Social media giant X, owned by Elon Musk, has begun rolling out a new messaging feature called XChat, boasting what Musk describes as ‘Bitcoin-style encryption’. The announcement, made by Musk in a June 1 X post, has ignited a lively discussion among cryptocurrency enthusiasts regarding the nature of Bitcoin’s security protocols.
XChat appears to be a significant upgrade to the platform’s existing direct messaging capabilities, set to include audio and video calling, “encryption, vanishing messages, and the ability to send any kind of file.” Musk also revealed that the new messaging service is built on the Rust programming language, emphasizing its “whole new architecture”. This rollout follows X’s May 29 announcement of a temporary pause on its encrypted messaging feature for improvements, likely in preparation for XChat’s launch.
Musk’s comparison of XChat’s encryption to Bitcoin has garnered immediate reactions from prominent figures in the crypto space. JAN3 CEO Samson Mow quickly clarified, “Bitcoin isn’t encrypted,” a sentiment echoed by crypto influencer “Pledditor,” who added that Bitcoin “uses elliptic curve cryptography.” Bitcoin core developer Luke Dashjr further chimed in, stating, “Bitcoin doesn’t even use encryption,” and raised concerns about the use of Rust for security reasons.
BitMEX Research offered a potential interpretation, suggesting, “Maybe Musk means like BIP-151 peer-to-peer communication encryption,” referencing a Bitcoin Improvement Proposal designed to encrypt Bitcoin node data.
For clarity, Bitcoin’s security relies on elliptic curve cryptography, a sophisticated mathematical lock system. This system involves a secret private key and a public key mathematically derived from it. The unique aspect is that the math works in one direction, making it nearly impossible to reverse. This allows Bitcoin holders to prove ownership and authorize transactions without ever revealing their private key, ensuring security without the need for a central authority. Bitcoin also employs SHA-256 hashing for transaction validation and the creation of block and transaction IDs.
TechCrunch reports that XChat is currently being rolled out to paid subscribers and is protected by a four-digit passcode.
X Money
In related news, Musk confirmed on May 25 that X is also developing a payments feature, “X Money,” which is slated for a limited beta launch later this year. Musk emphasized the need for “extreme care” when dealing with users’ savings.
Since acquiring Twitter in October 2022 and rebranding it as X, Musk has consistently articulated his vision of transforming the platform into an “everything app,” akin to China’s WeChat, offering a comprehensive suite of features and services beyond traditional social media. These new offerings suggest X is now positioning itself to compete directly with established encrypted messaging platforms like Telegram and Signal, while also aiming to rival popular fintech applications such as Venmo and Cash App.
