Quick Summary

  • A number of decentralized cryptocurrency products are on the roadmap of the popular messenger platform Telegram.
  • These cryptocurrency products include a decentralized cryptocurrency exchange (DEX) as well as a non-custodial wallet.

Telegram is stepping in to offer trustworthy and decentralized alternatives following the collapse of the cryptocurrency exchange FTX, which undermined confidence in the industry’s dominant participants.

Sam Bankman-Freid, CEO of FTX, is accused of mismanaging client funds after filing for bankruptcy on Nov. 11, leaving an estimated 1 million customers and other investors with billions of dollars in losses.

Decentralization as a solution

The centralized governance that wronged hundreds of thousands of cryptocurrency users may be corrected this way, according to Durov, by creating decentralized solutions. This comes after opinions are voiced on the concern of centralized platforms, where DeFi is looked upon as the hope and solution. 

The CEO and founder of the messaging app, Pavel Durov, stated on Wednesday that the business would start developing “non-custodial wallets” and “decentralized exchanges” that would allow millions of users to trade their cryptocurrencies securely.

The creator of Telegram added that it is not surprising that the FTX incident happened, given that a tiny number of people still hold a significant amount of power. The blockchain industry was created with the intention of being decentralized. Still, according to Durov, it ended up being concentrated in the hands of a small number of individuals who began abusing their position of authority. 

On Wednesday, Durov announced the news on his own Telegram channel.

Additionally, Durov pushed blockchain developers to make solutions that are user-friendly for everyone. He singled out Ethereum (ETH), saying that it “continues to remain out-of-date and expensive even after its recent tweaks.”

To encourage action on this issue, Durov urged developers to help steer the blockchain industry away from centralization by creating user-friendly decentralized applications for the public.

A shift from Web2 to Web3

The Telegram platform “Fragment” is a fully decentralized auction platform based on The Open Network or “TON”. This blockchain platform is fast and efficient enough to host popular applications, unlike Ethereum, which arguably remains outdated and expensive.

Building on this, Telegram plans to provide more tools that can support encouraging the shift toward decentralization in the industry.

Telegram Messenger, launched on IOD on August 14 and Android on October 20, 2013, is an encrypted cloud-based messenger application (IM) service that is available everywhere.

Share.

Jonatan is a freelancer, content writer, and researcher surrounding the topics of crypto, DeFi, and Web3. He is also the author of a crypto & Web3 book “What Exactly is Crypto”.