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WhatsApp has been doing this for years and many apps like this. By adding encryption it will be a game changer and I will never use Discord again if it gets implimented as long there is no backdoor and abuse on privacy.
Text chat has been encrypted over the wire for a long time as your Steam clients connection to Steam servers is always encrypted.
Voice is P2P which means its never stored on the server. Are the text messages encrypted when stoted on the server?
"Chat messages are encrypted when sent to/from our servers."
This sounds like it means the text is encrypted, but only during transmission - can steam / valve decrypt messages we send to other clients? is there a reason to let steam / valve see all our messages?
I like using Mumble as a voice chat client even though Discord is the king due to its slick user interface but Discord is data mining chats and is not to be trusted at all. Mumble is open source, secure, and what is nice is that it offers a in-game overlay and is available on Windows, Mac, Linux, Andriod & iOS.
If Valve makes the Steam Client open source, makes all chat weather it is voice or text encrypted and only users can read and hear one another and not Valve it will make Steam more popular for those who value privacy as privacy is becoming more of an issue on the web. Facebook is rotting due to their abuse in privacy and I don't want Valvle to go down this route.
A benefit by making it open source besides having transparency is allowing anyone to contribute to the Steam Client which can save Valve money and time since there are lots of Steam fans who are good programmers and I am sure would like to contribute.
Mumble is working on a new version that I believe has a better UI but I do not know when that will be released.
Still a huge difference making it look more like Discord in its theme.
I hope Steam adds encryption and stands strong on user privacy. Steam makes lots of money from game sales and there is no need for them data mine its users.