Musk Launches XChat: But What Exactly Is ‘Bitcoin-Style Encryption’?

Elon Musk has officially rolled out XChat, a messaging tool integrated within the X platform, featuring encryption, disappearing messages, file sharing, and audio/video calling. But it’s his reference to “Bitcoin-style encryption” that is stirring debate.

According to Musk, the service offers encrypted messaging, lets users send any type of file, and supports private voice and video calls. Messages can also be set to vanish, adding a privacy-focused edge to the feature.

What is XChat?

XChat introduces several features aimed at secure communication:

• End-to-end encryption: Messages are encrypted, ensuring that only the sender and recipient can read them.
• Disappearing messages: Users can send messages that vanish after a set period, enhancing privacy.
• File sharing: The ability to send various types of files seamlessly.
• Audio and video calls: Supports cross-platform communication without the need for phone numbers.

Musk highlighted that XChat was built using the Rust programming language, which is known for its performance and security features. His reference to “Bitcoin-style encryption” has sparked discussions.

So, what is “Bitcoin-style encryption”?

In Musk’s post, he stated that XChat is built “with (Bitcoin-style) encryption” using the Rust programming language, known for its speed and security. However, this phrasing raised eyebrows in the tech and crypto communities because Bitcoin doesn’t use encryption in the traditional messaging sense.

Bitcoin’s design centers around cryptographic signing, not encryption of content. When you send BTC, your private key signs a transaction to prove authenticity, but it doesn’t encrypt the data to hide it from others.

What Musk likely meant is that XChat’s encryption draws inspiration from Bitcoin’s cryptographic principles, such as public-private key systems and strong hash algorithms. In other words, the messages in XChat may be locked and unlocked using unique keys, similar to how wallets prove ownership in Bitcoin.

Musk emphasized that XChat was built using Rust, a programming language, suggesting a fresh backend architecture, likely decoupled from legacy messaging frameworks.

How the community reacted to the launch

The launch of XChat sparked different reactions across the tech and crypto communities, with excitement mixed in with technical clarifications and light skepticism.

Many users praised the platform’s emphasis on privacy, usability, and security-first design. Some applauded Musk for embracing Rust and for introducing a feature-rich messaging layer to X.

However, a number of developers and crypto experts quickly pushed back on the “Bitcoin-style encryption” phrasing. One core Bitcoin developer noted that Bitcoin doesn’t actually use encryption for its network or transactions but instead relies on cryptographic signatures.

Others pointed out that equating messaging privacy with blockchain security principles can be misleading, even if conceptually inspired.

One developer emphasized that Bitcoin was originally written in C++, and using Rust doesn’t inherently make code more robust. The language matters, but not as much as how it’s used.

Other X developments in the works

Musk recently confirmed that X Money, a peer-to-peer payment system, is in the works. The service is being developed in collaboration with Visa and is expected to launch in beta with limited access. According to Musk, this cautious rollout is intentional.

In another development, Telegram’s CEO Pavel Durov announced plans for a partnership with Musk’s AI venture, xAI, suggesting that Telegram might integrate the Grok chatbot.

While the statement hinted at a major deal, Musk publicly responded that no agreement had been signed, keeping the details speculative for now.