Elon Musk Launches XChat With Bitcoin-Style Encryption

Elon Musk, the owner of X, has announced the launch of a new messaging feature called XChat, which will include "Bitcoin-style encryption." This new feature is designed to enhance the security and privacy of direct messages on the platform. Musk described the encryption as a "whole new architecture," although specific technical details were not provided. XChat is built using the Rust programming language, known for its speed and memory safety, indicating a strong focus on creating a secure messaging system.

XChat is more than just an encrypted messaging service; it also supports audio and video calls, as well as the ability to send any type of file. This makes it a comprehensive communication tool that aims to provide users with a seamless and secure experience. The feature is currently rolling out to paid subscribers and is protected by a four-digit passcode, adding an extra layer of security.

Musk's announcement has sparked a range of reactions from the cryptocurrency community. Some Bitcoin enthusiasts, such as JAN3 CEO Samson Mow and crypto influencer "Pledditor," pointed out that Bitcoin itself is not encrypted but uses elliptic curve cryptography. Bitcoin core developer Luke Dashjr also noted that Bitcoin does not use encryption and that using the Rust language for security reasons might be a bad idea. BitMEX Research suggested that Musk might be referring to BIP-151, a Bitcoin Improvement Proposal designed to encrypt Bitcoin node data.

Bitcoin's elliptic curve cryptography works by using a secret private key and a public key derived from it, allowing holders to prove ownership and authorize transactions without revealing the private key. This system is secure without needing a central authority and uses SHA-256 hashing for transaction validation and creating block and transaction IDs. The discussion around "Bitcoin-style encryption" highlights the advanced cryptographic techniques that ensure high levels of data protection, although the exact implementation in XChat remains unclear.

In addition to XChat, Musk confirmed that X is also working on a payments feature called X Money, which will launch in beta later this year. The testing phase will be limited to ensure extreme care is taken, given the sensitivity of financial transactions. Musk's vision for X includes transforming the platform into an "everything app" similar to WeChat, offering a range of features and services beyond typical social media functionalities.

The introduction of XChat positions X to compete with encrypted messaging platforms like Telegram and Signal, as well as popular fintech apps like Venmo and Cash App. This move aligns with Musk's broader goal of creating a versatile and secure communication and financial ecosystem within X. As the feature continues to develop, it will be crucial to monitor its evolution and the impact it has on user privacy and security in the messaging landscape.