RexSystem1 voteoriginally by @frolleks on GitHub OP
Other than the chats being encrypted, the media/attachments stored in those chats should be encrypted as well. But if the community has the NSFW scanning setting turned on then of course it'll get scanned before it is encrypted and then stored.
And if federation gets implemented, I do hope it's identity federation because if it was message federation this feature wouldn't go as well as intended. The reason being, how would you encrypt and decrypt messages in the same community but is stored in different servers? That wouldn't go so well as I would imagine.
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Comment by @frolleks