Elon Musk Launches XChat with Bitcoin-Style Encryption for Enhanced Security

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 it into an "everything app" similar to WeChat, offering a range of features and services beyond typical social media platforms. This move positions X to compete with encrypted messaging platforms like Telegram and Signal, as well as popular fintech apps like Venmo and Cash App.

X's decision to pause its encrypted messaging feature on May 29, while working on improvements, may have been related to the development of XChat. This pause suggests a commitment to refining the feature to meet high standards of security and functionality. The cautious approach to rolling out XChat in beta phase allows for testing and feedback, ensuring a smooth and secure user experience before a full-scale launch.

Overall, the introduction of XChat with "Bitcoin-style encryption" marks a significant advancement in X's efforts to enhance user privacy and security. As the feature continues to develop, it will be interesting to observe its evolution and the impact it has on the broader messaging landscape. The combination of advanced encryption, comprehensive communication tools, and a focus on user security positions XChat as a potential game-changer in the world of messaging platforms.