Telegram is about to create a set of decentralized tools, including personal wallets and decentralized exchanges, its founder Pavel Durov said through his Telegram channel on November 30.
The move is a response to FTX’s recent collapse, Durov said, as the industry ended up concentrating in the “hands of a few to abuse their power.” As a result, a lot of people lost their money when FTX, one of the biggest exchanges, went bankrupt.”
This announcement comes weeks after the launch of Fragment, a unique username decentralized auction platform based on The Open Network, or TON, a Layer 1 blockchain. According to Durov, Fragment has sold $50 million worth of usernames in less than a month.
Apart from founding Telegram and Fragment, Durov was also behind the first official version of the TON blockchain. He stated about the new decentralized tools being developed:
“The solution is clear: Blockchain-based projects should go back to their beginnings: decentralization. Cryptocurrency users should switch to trustless transactions and personal wallets that do not depend on any third party.”
Durov also made comments about the inefficiencies of legacy platforms, specifically mentioning Ethereum, “which unfortunately remains outdated and expensive even after its recent changes.” He went on to say:
“The days when the inefficiencies of legacy platforms justified centralization should be long gone. With technologies like TON realizing their potential, the blockchain industry should finally be able to fulfill its core mission: putting power back in the hands of the people.”
The most recent tool released by the Telegram team, Fragment, was built in five weeks with five people working on the solution, according to Durov. The idea was first floated in late August, with the team intending to use “NFT-like smart contracts” to auction off highly sought-after usernames. Fragment went live shortly after the TON Foundation launched TON DNS, which allows users to assign human-readable names to cryptocurrency wallets, smart contracts, and websites.
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