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Telegram uses an open source MTProto encryption protocol that provides complete end-to-end encryption for secret chats. To show off their confidence in the protocol the company behind Telegram has organized $200,000 and $300,000 challenges to break the encryption. So far there have been no winners. See More
The only way to get end-to-end encryption (client-client) using Telegram is to use the Secret Chat function, anything through the service is server-client encrypted. Also secret chat is only implemented in the mobile apps, meaning there is no way to encrypt messages end-to-end when using the desktop client or the web browser client. See More