The messaging platform is building decentralized tools, including no-custodial wallets and decentralized exchanges. According to founder Pavel Durov, Telegram will create several decentralized tools, including non-custodial wallets and decentralized exchanges, via its Telegram channel on November 30. The move comes in response to FTX’s recent collapse, Durov said, as the industry eventually became concentrated in the “hands of a few to abuse their power.” As a result, many people lost their money when FTX, one of the largest exchanges, went bankrupt.
This announcement comes weeks after the launch of Fragment, a decentralized auction platform for unique usernames built on The Open Network, or TON, a layer 1 blockchain. According to Durov, Fragment has $50 million worth of usernames in less than a year – Dollars sold per month.
Durov was responsible for creating the first official iteration of the TON blockchain in addition to Telegram and Fragment. “The solution is clear: blockchain-based projects need to return to their roots: decentralization,” he said about the new decentralized tools being created. Users of cryptocurrencies need to switch to trusted transactions and independent self-hosted wallets.
Durov also commented on the inefficiency of older platforms, specifically mentioning Ethereum, “which unfortunately remains outdated and expensive even after its recent tweaks.” He continued, “The time when the inefficiencies of Legacy platforms that supported centralization ought to be retired long ago. With technologies like TON realizing their potential, the blockchain industry should finally be able to fulfill its primary purpose: Giving power back to people.
The latest tool released by the Telegram team, Fragment, was created in five weeks, according to Durov, with five people working on the solution. Smart Contracts” to auction coveted usernames. The snippet was released shortly after the TON Foundation launched TON DNS, which allows users to assign human-readable names to crypto wallets, smart contracts, and websites.