Musk Faces Backlash Over ‘Bitcoin-Style Encryption’ Claim in XChat Launch

Elon Musk’s recent announcement of XChat has stirred controversy in a matter of hours. Musk stated that XChat is “built on Rust with (Bitcoin-style) encryption,” a claim that has attracted criticism from cybersecurity experts and the broader crypto community.

Misunderstanding Bitcoin-Style Cryptography

Critics argue that Musk’s reference to “Bitcoin-style encryption” is technically misleading. Bitcoin does not use encryption in the conventional sense. Instead, it relies on cryptographic hashing and digital signatures. They also point out that these tools verify data authenticity rather than conceal it.

The objective of these cryptographic mechanisms is to guarantee transparency, not privacy. In reality, each Bitcoin transaction is publicly recorded on a blockchain ledger, which is accessible to any individual with an internet connection.

Cryptographer Ian Miers weighed in, explaining that Bitcoin’s core design makes all user activity public and traceable. He emphasized that terms like “Bitcoin-style” and “Rust” fall short of describing a secure messaging protocol.

Ambiguity Surrounding XChat’s Security Features

The ambiguity in Musk’s language has sparked concern about the actual security architecture of XChat. The use of Rust, which is a language known for safety and performance, is generally viewed as a positive. However, the lack of technical details about the encryption standards and data handling on XChat leaves much to speculation.

Privacy advocates and users alike are calling for greater transparency. They argue that if XChat is to be trusted as a secure alternative to platforms like WhatsApp or Signal, its cryptographic foundations must be clearly explained and open to public scrutiny.