# Background Islamic finance is most easily understood in contrast to conventional finance. The global financial system is underpinned by interest-based principles that result in inflationary systems. These systems reward spending today and penalize saving for tomorrow. Islamic finance eschews [riba](https://www.sifif.tn/images/articles/the%20problem%20with%20interest.pdf), or interest, in favor of wealth preservation and growth through equity investments and the sharing of risk. While it is not within the scope of this paper, it is arguable that [Islamic finance](https://www.sifif.tn/images/articles/the%20problem%20with%20interest.pdf) offers the answer to today’s social justice issues, stemming from widening financial inequality both within and across nations. When it comes to finance, the shariah is a prohibitive code that is focused on defining what is prohibited, instead of legislating what is not prohibited. As such, anything that is [not specifically prohibited is therefore allowed](http://www.untag-smd.ac.id/files/Perpustakaan_Digital_1/FINANCE%20Understanding%20Islamic%20Finance.pdf). The main shariah prohibitions in finance are: * Prohibition of Riba (interest) * Prohibition of Gharar (uncertainty) * Prohibition of Maisir/Qimar (gambling) We’ll explain these prohibitions in more detail in the following section on Islamic insurance, or Takaful. [Islamic banking](https://www.mordorintelligence.com/industry-reports/global-islamic-finance-market/market-size) constitutes 6% of global banking today, making [incredible strides from its modest beginnings](https://docs.takadao.io/takasure-1.0-whitepaper/background) in the late 1970s. And yet, room for growth is enormous. Muslims today comprise 24% of the global population and are projected to grow to 31% by 2060. Even if Islamic finance served only the “niche” Muslim audience, it should still grow to catch up with the population. Currently, Islamic finance boasts an [annual growth rate of 14%](https://www.mordorintelligence.com/industry-reports/global-islamic-finance-market/market-size), accelerating much faster than traditional finance. Considering the advent of bitcoin, cryptocurrencies and blockchain technologies, it appears that Islamic finance is poised to grow beyond expectations. The anti-inflationary fundamentals of bitcoin and the ethos of decentralization are giving new tools upon which to build Islamic finance. Never has there been a better time to start reformulating global finance according to Islamic principles, that promise a return to social justice and happier societies.