The founder of messaging app Telegram is announcing the development of a new decentralized exchange (DEX) platform and crypto wallet.
In a new post to his channel, Telegram founder and CEO Pavel Durov says that blockchain developers should go back to the roots of crypto and focus on decentralization as centralized entities tend to abuse their power.
“The blockchain industry was built on the promise of decentralization, but ended up being concentrated in the hands of a few who began to abuse their power. As a result, a lot of people lost their money when FTX, one of the largest exchanges, went bankrupt.
The solution is clear: blockchain-based projects should go back to their roots – decentralization. Cryptocurrency users should switch to trustless transactions and self-hosted wallets that don’t rely on any single third party.”
According to Durov, Telegram will now update Fragment, its popular decentralized auction platform, to include non-custodial crypto wallets and a decentralized exchange platform, a move he says could help right the wrongs caused by excessive centralization.
“This week, Fragment will expand beyond usernames. Telegram’s next step is to build a set of decentralized tools, including non-custodial wallets and decentralized exchanges for millions of people to securely trade and store cryptocurrencies.
This way we can fix the wrongs caused by the excessive centralization, which let down hundreds of thousands of cryptocurrency users.”
Earlier this month, FTX, a prominent centralized exchange, went bankrupt after its CEO Sam Bankman-Fried allegedly mishandled billions of dollars worth of customer funds, most of which is still missing.
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/Klavdiya Krinichnaya