Elon Musk Announces New XChat With “Bitcoin-Style Encryption”
Elon Musk, owner of the X platform, made headlines when he announced XChat, a new direct messaging (DM) feature that integrates encryption, with a focus on “Bitcoin-style encryption.”
6/2/20253 min read


ELon announced on X about this event
Since acquiring Twitter (now X) in 2022, Elon Musk has been pushing for X to become an “everything app” similar to WeChat, integrating functions such as messaging, payments, and social networking. XChat was introduced as a major step in upgrading the platform’s direct messaging system, with features such as end-to-end encryption, vanishing messages, support for sending all file types, and audio/video calling without a phone number.
The highlight of Musk's announcement was the phrase "Bitcoin-style encryption," referring to a new security architecture built on the Rust programming language. However, the phrase has sparked controversy, with cryptocurrency and security experts pointing out that Bitcoin doesn't actually use encryption in the traditional sense. The event comes as Bitcoin is trading around $104,000, after falling 3% last week, and the cryptocurrency community is particularly sensitive to claims related to blockchain technology.
The Meaning of XChat and the Claim of “Bitcoin-Style Encryption”
Musk's statement about XChat has several important implications:
XChat is advertised with features like end-to-end encryption, self-destructing messages, and the ability to make audio/video calls without a phone number.
These features suggest that X is aiming to compete directly with secure messaging apps like Signal, Telegram, and WhatsApp. The use of Rust, a programming language known for its speed and memory safety, further underscores Musk’s commitment to a secure and efficient messaging system.
XChat is part of Musk's larger plan to turn X into an integrated platform that offers services ranging from messaging, payments (with X Money coming soon), to social networking. The emphasis on security could appeal to privacy-conscious users, especially amid growing concerns about personal data.
The phrase “Bitcoin-style encryption” has gained a lot of attention in the cryptocurrency community, but it has also sparked controversy. Bitcoin primarily uses cryptographic techniques such as Elliptic Curve Cryptography (ECC) and digital signatures (ECDSA/Schnorr) to authenticate transactions, rather than encrypting data in the way that messaging apps require.
Musk could be referring to the adoption of similar cryptographic techniques, such as the BIP-324 protocol for Bitcoin's peer-to-peer (P2P) channel encryption, or methods like ECDH and ECIES to ensure message confidentiality.
XChat's Potential and Future Prospects
With features like end-to-end encryption, self-destructing messages, and calling without a phone number, XChat has the potential to compete with apps like Signal and Telegram. Its direct integration with the X platform, which has 600 million monthly active users (as of October 2024), gives it a big advantage.
XChat could leverage Musk’s other projects, like X Money (an upcoming digital wallet service) and potential integration with blockchain technologies. Some users have speculated about the possibility of sending Bitcoin or other crypto assets via XChat in the future.
In a landscape of growing user concerns about privacy, XChat could appeal to those looking for a secure messaging platform, especially if it proves to be highly secure.
Conclude
Elon Musk's announcement of XChat with "Bitcoin-style encryption" was a bold move in his effort to turn X into a full-fledged platform that could compete with leading messaging apps. While features like end-to-end encryption, self-destructing messages, and calling without a phone number promise a secure and convenient experience, the vagueness of the term "Bitcoin-style encryption" and lack of technical transparency have caused controversy. The cryptocurrency community, while excited, remains skeptical about the veracity of the claim.
XChat has the potential to reshape the way users interact on X, especially if it successfully integrates robust security features and leverages Musk’s ecosystem. However, to succeed, X will need to provide more technical clarity and conduct independent audits to verify its security claims. In the rapidly evolving space of cryptocurrencies and messaging technology, XChat is a testament to Musk’s ambition, but whether it can live up to expectations remains a big question that will require time and transparency to answer.
Once again we give our opinion on potential projects in the crypto market. This is not investment advice, consider your portfolio. Disclaimer: The views expressed in this article are solely those of the author and do not represent the platform in any way. This article is not intended to be a guide to making investment decisions.
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