Telegram is on the path to creating safer, decentralized products, including a non-custodial wallet. The decision is a way to mitigate the effects of exchange collapses like FTX’s.
Telegram recently released a statement on its channel on December 1, courtesy of its CEO Pavel Durov concerning new products it plans to launch. Among them is a decentralized exchange and wallets (non-custodial wallets) that help users to have more control over their assets.
The step is to mitigate the effects of exchange crashes like FTX. In a way, the greatest lesson in the FTX fiasco is that users need more control over their private keys. Also, it shows that custodial wallets are not the wisest decision since customers do not entirely own their assets.
As such, decentralized exchanges and non-custodial wallets, including hard wallets, are the best way forward. It would be wise to note that assets lost from custodial wallets are hard to recover. This crossroad is no surprise considering the current situation with FTX, which cannot settle all its obligations.
Why non-custodial wallets? Telegram explains
According to Pavel Durov, blockchain debuted in the industry with hopes of creating decentralized, secure, faster, and less costly options to do things. However, as is common with centralized exchanges, there are issues with power division among top officials, messing with the decentralization idea.
Therefore, it is not uncommon for leaders to misuse power. In FTX’s case, people have lost millions of dollars due to its current bankruptcy. Despite US financial regulators stepping in to understand what went down, users still can’t access their assets. For investors, this is a terrible time.
For this reason, Telegram believes that veering the blockchain industry towards more trustless systems is the best way to go. Notably, decentralized exchanges are becoming a favorite for crypto enthusiasts today, aligning with Telegram’s vision.
Introducing Fragment and the TON blockchain
Fragment is a platform supporting collectibles exchange between users. The free marketplace runs on the TON blockchain, a chin built by Telegram founders in 2018. The third-gen blockchain takes advantage of layer 1 solutions, currently in the hands of the TON community.
The TON blockchain has lightning speeds and cheap transactions, unlike most first-gen blockchains, which struggle with scalability issues. Users can connect their TON wallets to Fragment using their Telegram accounts. For more information, check out the Fragment network here.
Fragment is the start of Telegram’s vision for a more decentralized blockchain and crypto industry. In the future, its users can expect more decentralized tools to aid in a more controlling feel over their assets.
