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Editing by Nathaniel Cajuday
With the hope of preventing another FTX-like crash in the industry, Pavel Durov, the Founder and CEO of the messaging application Telegram, announced that the firm is currently aiming to build trustless and decentralized alternatives and create non-custodial wallets and decentralized exchanges.
“This way we can fix the wrongs caused by the excessive centralization, which let down hundreds of thousands of cryptocurrency users,” said Durov, citing that the FTX crash happened because the industry has deviated from its decentralized nature.
He highlighted that crashes and other adverse crypto events will be eliminated if blockchain-based projects go “back to their roots—decentralization.”
Accordingly, he argued that the project should be more than feasible, noting that the creation of Telegram’s decentralized auction platform, Fragment, “took only 5 weeks and 5 people, including myself.”
Fragment was launched last month and has already stacked in $50 million worth of Toncoin by selling tokenized usernames on the blockchain. It operates over The Open Network (TON)—a layer-1 blockchain originally designed by the Telegram team, which tried domain name auctions priorly. It launched the TON DNS service, which enabled users to assign human-readable names to crypto wallets, smart contracts, and websites.
Consequently, Durov further addressed the developer community and called for taking the industry back towards decentralized applications and away from having to trust third parties. He emphasized that the reliance on centralized entities has caused many to lose their money in FTX’s bankruptcy at “the hands of a few who began to abuse their power.”
The FTX collapse– which started from a Coindesk article— happened last month and had its rapid downfall as its rival Binance announced that it will liquidate their FTT holdings. Its CEO, Changpeng Zhao, denied conspiracy allegations and even signed a non-binding agreement to acquire the firm. Although the acquisition was announced, the value of FTX further went down until Binance eventually dropped the bid because they deemed that “the issues are beyond our control or ability to help.” (Read more: What Happened? BlockFi Files for Bankruptcy Amid FTX Crypto Contagion)
This article is published on BitPinas: Telegram to Build Decentralized Crypto Exchange, Wallet
Disclaimer: BitPinas articles and its external content are not financial advice. The team serves to deliver independent, unbiased news to provide information for Philippine-crypto and beyond.