.png){kind=logo}
Social media platform X, owned by Elon Musk, is launching XChat, a new messaging service designed to prioritize user privacy and security. Musk declared that XChat will feature "Bitcoin-style encryption," which he described as a "game-changer" for direct messaging. This new service will enable users to send disappearing messages and make audio or video calls without the need to link a phone number.
Musk stated that XChat will utilize advanced cryptography, drawing inspiration from Bitcoin’s robust security model. The messaging service is built using the Rust programming language, which is renowned for its efficiency and security. Musk said, “You can do audio and video calls without a phone number across all platforms,” stressing that the tool offers more privacy.
XChat is currently in beta testing, with initial access limited to premium subscribers. The rollout comes after X paused its existing encrypted messaging feature to work on improvements, signaling the company’s intention to compete directly with platforms like WhatsApp, Signal, and Telegram.
Musk’s reference to “Bitcoin-style encryption” has sparked debate within the cryptocurrency and cybersecurity communities. While Musk has promoted the new encryption approach, several experts have clarified how Bitcoin’s technology works. Samson Mow, CEO of JAN3, pointed out that “Bitcoin isn’t encrypted,” and core developer Luke Dashjr noted, “Bitcoin doesn’t even use encryption.”
Bitcoin’s network secures transactions through digital signatures and elliptic curve cryptography, not encryption. This system enables users to securely demonstrate ownership of Bitcoin and facilitate payments without disclosing sensitive data. Using SHA-256 hashing, the Bitcoin protocol ensures that transactions are genuine and IDs are issued. However, the blockchain is public and shows all transaction information.
Other experts, including Assistant Professor Ian Miers at the University of Maryland, have questioned the accuracy of using the term “Bitcoin-style encryption” for a messaging app. Miers pointed out that Bitcoin focuses more on signatures than encryption, so labeling it as such is misleading. Despite the details behind these debates, XChat’s success demonstrates that many users want privacy when engaging in digital communication.
While launching new products at X, Elon Musk continues to signal support for Bitcoin as an asset. Arkham, a blockchain analytics firm, reports that Tesla holds approximately $1.25 billion in Bitcoin, a value that has remained relatively stable since 2021. Musk continues to support Bitcoin, as evidenced by his call for the US to have a Bitcoin reserve and by his participation in related talks.
The price of Bitcoin climbed by almost 2% following Elon Musk’s announcement of a new encryption, after it dropped as low as $103,000. Even with an 8% drop last week, current price estimates for Bitcoin are above $105,000. Some analysts suggest that investors' attention to Tesla shares has risen again after Elon Musk discussed introducing Bitcoin-like solutions into consumer applications.
Also Read: Tesla May Buy $3 Billion More Bitcoin as Musk Doubles Down
