Musk's XChat Promises Bitcoin-Style Encryption — Is It Credible?
Elon Musk is at it again in the virtual world—this time by promising to roll out "Bitcoin-style" end-to-end encryption onto XChat, the revamped direct messaging service on X (formerly Twitter). The announcement, delivered in true Musk fashion via a tweet, has excited some and left most of the industry insiders and observers in the tech and cryptocurrency worlds unconvinced.
XChat, which is written completely in the Rust programming language, is shipping with a raft of privacy-focused features: end-to-end encrypted messaging, disappearing messages, any-file-type support, and cross-platform video and audio calls — all without users needing a phone number.
Musk says XChat's encryption is built on the same robust cryptographic foundations that protect Bitcoin, but what does that actually mean?
Cracking "Bitcoin-Style" Encryption
Bitcoin's own security relies upon elliptic curve cryptography (ECC), specifically the Elliptic Curve Digital Signature Algorithm (ECDSA), which allows users to generate public/private key pairs and securely sign messages.
In discussing messaging, "Bitcoin-style" cryptography likely means that XChat would utilize similar ECC-based techniques — i.e., Elliptic Curve Diffie–Hellman (ECDH) for secure key exchange and ECIES for message encryption. This can provide strong, efficient end-to-end security, with only the sender and recipient capable of reading the messages.
However, as some cryptography experts have pointed out, Bitcoin itself does not encrypt transactions, but rather signs them, so that the "Bitcoin-style encryption" label is more of a marketing phrase than an engineering term.
Security researcher Ian Miers further contributed, "Bitcoin primarily uses signatures, not encryption. It's like saying, we decided to drive our rocket on water, as NASA uses Hydrogen and Oxygen". Others comment that Rust is a secure, new language, but it's not exactly a guarantee of cryptographic correctness.
Security Experts: Divergent Perspectives and Outstanding Issues
The cryptosphere and security communities disagree. Some privacy champions welcome XChat's move as a step long overdue toward the mainstream embrace of strong encryption, potentially signing up millions for public-key cryptography and secure digital communication as the new standard. Others caution that in the absence of open-source code and third-party audit, individuals are putting their trust in Musk's guarantee—a risky bet in the wake of the platform's recent history of data breaches.
“Needless to say ‘Bitcoin style’ and ‘Rust’ are not descriptions of an encryption scheme, nor are they strong indicators of security for a messaging app.”
“XChat’s ECC-based protocols could set a new standard for privacy, but only if they’re transparent and auditable.”
— @PrivacyMatters, June 2, 2025
Mainstream Effect: Crypto Onboarding or Confusion?
If XChat's security stands up to examination, it is a privacy game-changer for mass market messaging. The disappearing messages, file sharing, and phone number-less accounts place XChat on a head-to-head collision course with WhatsApp, Signal, and Telegram, but with the added twist of crypto-motivated security. Some believe this could demystify public-key cryptography for millions, paving the way for more mass-market use of crypto.
Yet, the lack of technical clarity and the closed nature of X’s stack have left many experts cautious. Without open protocols or code audits, it’s impossible to know if XChat’s encryption is as “Bitcoin-grade” as Musk claims — or if it’s simply marketing spin
Whether XChat's encryption is genuine privacy innovation or just good marketing, one thing is certain: the battle for secure messaging—and crypto's place in mainstream tech — is only just starting.
