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I think the most common complaint is that group chats are not encrypted, and regular chats are also unencrypted by default.

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They are encrypted, just like everything else in the app, just not E2E. There's a big difference between no encryption and encryption that isn't E2E.

Yes, one of those means the server can see all your messages and the other means it can't.

Transport encryption has been the default for almost all internet traffic for some years so it's no longer something that you can reasonably not have.

Which has benefit so that you can see past messages. This why I think Telegram is a perfect place for hosting public groups chat (like an IRC but with better usability).

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