Social media platform X, under the ownership of Elon Musk, is introducing a new messaging feature dubbed ‘XChat’, which Musk claims will incorporate “Bitcoin-style encryption.”
This development, alongside a forthcoming payments feature called X Money, signals X’s continued ambition to evolve into an “everything app,” though Musk’s specific technical claims about encryption have drawn swift reactions and clarifications from the Bitcoin community.
XChat is being positioned as a significantly more feature-rich iteration of the platform’s existing direct messaging function.
According to a June 1 X post by Musk, the new service will boast audio and video calling capabilities, “encryption, vanishing messages, and the ability to send any kind of file.”
All new XChat is rolling out with encryption, vanishing messages and the ability to send any kind of file. Also, audio/video calling.
This is built on Rust with (Bitcoin style) encryption, whole new architecture.
Musk further elaborated that XChat is built on the Rust programming language, which he stated had “(Bitcoin style) encryption, whole new architecture.”
This announcement follows a statement from X on May 29, indicating a temporary pause on its encrypted messaging feature to implement improvements, a move that may have been linked to the development and imminent release of XChat.
Crypto community reacts: debating ‘Bitcoin-style encryption’
Musk’s assertion regarding XChat’s ‘Bitcoin-style encryption’ immediately spurred a flurry of responses from prominent figures within the Bitcoin community.
Many were quick to point out the technical nuances of Bitcoin’s security model.
JAN3 CEO Samson Mow, for instance, stated that “Bitcoin isn’t encrypted” in the traditional sense of data obfuscation.
Bitcoin isn’t encrypted.
Crypto influencer “Pledditor” added a clarifying detail, noting that Bitcoin “uses elliptic curve cryptography.”
Bitcoin Core developer Luke Dashjr also weighed in, asserting that “Bitcoin doesn’t even use encryption” for its core transaction data and further expressed an opinion that using the Rust programming language was “a bad idea for security reasons.”
Offering a potential interpretation of Musk’s comment, BitMEX Research suggested,
“Maybe Musk means like BIP-151 peer-to-peer communication encryption,” referring to a specific Bitcoin Improvement Proposal designed to encrypt communication data between Bitcoin nodes, rather than the transaction data on the blockchain itself.
It’s important to understand that Bitcoin’s security primarily relies on elliptic curve cryptography, which functions like a sophisticated mathematical lock system.
Users possess a secret private key and a corresponding public key that is mathematically derived from it.
This system allows holders to prove ownership of their Bitcoin and authorize transactions without ever revealing their private key, ensuring security without the need for a central authority.
Bitcoin also utilizes SHA-256 hashing for validating transactions and creating unique block and transaction identifiers.
X money payments feature on the horizon
In addition to the XChat rollout, Elon Musk confirmed on May 25 that X is also developing a payments feature named ‘X Money’.
This service is slated to launch in a beta version later this year. Musk emphasized a cautious approach to its introduction, stating that testing will involve a “very limited access beta at first”.
He added, “when people’s savings are involved, extreme care must be taken,” highlighting the sensitivity and responsibility associated with financial services.
These new offerings underscore X’s ongoing transformation since Musk’s acquisition of the platform (then known as Twitter) in October 2022.
Musk has long articulated his vision of turning X into an “everything app,” akin to platforms like WeChat, by integrating a wide array of features and services that extend beyond typical social media functionalities.
The introduction of XChat and the forthcoming X Money suggests X is now actively positioning itself to compete with established encrypted messaging platforms such as Telegram and Signal, while also setting its sights on popular fintech applications like Venmo and Cash App.
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