In the same way that FB, Whatsapp, and pretty much every other app works. I doubt there are any chat apps that don't encrypt between the client and server.
IMHO, it is NOT encrypted, unless the service provider (also can't read your message). A promise from a Russian based company (the Facebook of Russia) doesn't put any assurances for me.
We can't just assign new definitions to encryption. It's encrypted in such a way that a person watching the wire can't see the contents of the message. If you don't want the message on the server, use a secret e2e chat. They are very up front and clear on this matter.
For the vast majority of my messages, I'm fine with them living on their servers. If I need to send credentials to my family, I can use an e2e channel. For me, it's a step up from hangouts and definitely better than whatsapp or facebook messenger.
I acknowledge that it is not the standard tech definition. From a user perspective, 'Encryption' ought to mean only me and the person/people whom I communicate with can read the message.
The founder of Telegram, Pavel Durov, was also _the original creator_ of VK. Some say “he's the Mark Zuckerberg of Russia”, an unfair comparison if you'd ask me. While both Pavel and Mark have built successful social platforms, that's where the similarities ends.
Because he refused to comply with government demands to identify activists using VK, Durov was personally ousted from the company (and self-exiled from Russia altogether).
While refreshing my Durov trivia, I found he published a text a couple days ago, and this following passage just had a good vibe;
“I focused on what I enjoyed most – creating social platforms that (hopefully) bring good to humanity. I spent most of my personal funds on Telegram for people to enjoy a free service that strives for perfection.”[1]
