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XChat Rolls Out with New Features, But 'Bitcoin-Style Encryption' Claim Sparks Debate

6:33 PM   |   02 June 2025

XChat Rolls Out with New Features, But 'Bitcoin-Style Encryption' Claim Sparks Debate

XChat Rolls Out with Enhanced Features, Sparks Debate Over 'Bitcoin-Style Encryption'

In a significant move for the platform formerly known as Twitter, Elon Musk recently announced the rollout of XChat, a revamped version of X's Direct Messaging (DM) feature. The announcement, made via a series of posts on X, detailed a suite of new capabilities aimed at transforming the platform's private communication layer. These features include support for vanishing messages, file sharing, and integrated audio and video calling, building upon the existing DM functionality.

The introduction of XChat signals X's ambition to compete more directly with established messaging platforms that offer robust privacy and multimedia sharing features. However, the rollout is not yet universal. XChat has reportedly been undergoing beta testing with a select group of users, and while Musk expressed an expectation to bring the feature to all users imminently, he also acknowledged that potential scaling issues could affect the timeline. This phased approach is common for large-scale feature deployments on platforms with hundreds of millions of users.

Under the Hood: Rust and 'Bitcoin-Style' Encryption

Musk's announcement also touched upon the technical foundation of the new messaging system. He stated that the updated version of XChat has been built on the programming language Rust and features a "whole new architecture." Rust is known for its focus on memory safety and performance, making it a popular choice for building reliable and efficient systems, particularly those handling sensitive data or requiring high throughput.

More notably, Musk claimed XChat utilizes "Bitcoin style" encryption. This particular phrase immediately drew attention and sparked considerable debate among cryptography experts and the wider tech community. The confusion stems from the fundamental difference between how Bitcoin uses cryptography and how messaging applications typically employ encryption for privacy.

Bitcoin, at its core, is a decentralized digital currency system. Its security relies heavily on cryptographic principles, specifically public key cryptography and digital signatures. These are used to verify transactions, prove ownership of funds, and maintain the integrity of the blockchain ledger. However, Bitcoin itself does not encrypt the content of communications or transactions in the way that secure messaging apps encrypt the actual messages being sent between users. Transaction details on the Bitcoin blockchain are public, not encrypted for privacy.

A screenshot from a Grok analysis stating, 'Bitcoin isn't encrypted.'
Image Credits:X post by Samson Mow

This discrepancy has led to speculation regarding Musk's intended meaning. Possibilities debated online include:

  • He might be using the term "Bitcoin-style" as marketing jargon, leveraging the public's association of Bitcoin with advanced technology and security, even if the technical implementation differs significantly from typical messaging encryption.
  • He might misunderstand the specific cryptographic techniques used in Bitcoin versus those required for secure, private messaging.
  • He might have simply used the wrong word, perhaps intending to refer more broadly to "cryptography" or specific cryptographic primitives inspired by those used in the blockchain space, rather than a direct application of Bitcoin's transaction-verification methods to message encryption.

The lack of clarity is particularly relevant because Musk has previously expressed a desire for X's DMs to become a challenger to platforms renowned for their strong encryption and privacy features, such as Signal and iMessage. These platforms typically employ end-to-end encryption (E2EE), a method where messages are encrypted on the sender's device and can only be decrypted by the recipient's device. This ensures that even the service provider cannot read the content of the messages. Describing XChat's security with a term like "Bitcoin-style encryption," which doesn't align with the standard understanding of E2EE for messaging, raises questions about whether XChat truly offers the same level of privacy and security as these competitors.

Feature Set: Vanishing Messages, File Sharing, and Calls

Beyond the technical underpinnings and the encryption debate, XChat is set to introduce several practical features designed to enhance the user experience and utility of X's direct messages. Vanishing messages, a feature popularized by apps like Snapchat and Telegram, allows users to set messages to automatically delete after a specified period. This can be useful for sensitive conversations or simply to reduce digital clutter.

The addition of file sharing capabilities is another crucial step towards making X DMs a more comprehensive communication tool. Users will be able to share documents, images, and other files directly within their chats, removing the need to switch to other applications for this purpose. This aligns with X's broader vision of becoming an "everything app" where users can perform a wide range of activities without leaving the platform.

Furthermore, Musk confirmed that XChat users can now make audio and video calls directly through the platform, across all supported devices and operating systems, without requiring a phone number. This feature was previously available in some form but is being integrated more deeply into the new XChat architecture. Voice and video calls have become standard features in modern messaging apps, and their inclusion in XChat is essential for X to remain competitive in the communication space.

Development Context and Recent Challenges

The rollout of XChat follows a period where X had reportedly paused work on its previous encrypted DMs feature. This pause, reported shortly before the XChat announcement, suggests that XChat is intended to be the successor to or a significant evolution of those earlier efforts. It indicates a strategic shift or consolidation of development resources towards this new, more comprehensive messaging system built on Rust.

However, the timing of the XChat rollout coincides with a period of significant instability and technical issues on the X platform. Over the past week or so, users have reported multiple outages and bugs that have affected various features, including the ability to browse timelines and use direct messages. These disruptions raise concerns about the platform's underlying infrastructure and its readiness to handle the increased load and complexity introduced by a new, feature-rich messaging system like XChat, especially as it rolls out to the entire user base.

The Importance of Encryption in Messaging

In an era where digital privacy is increasingly scrutinized, the method and strength of encryption in messaging applications are paramount. End-to-end encryption (E2EE) is widely considered the gold standard for private communication because it prevents third parties, including the service provider, from accessing the content of messages. This is achieved by ensuring that the keys needed to decrypt a message are held only by the sender and the intended recipient(s).

When a user sends a message using an E2EE service, their device encrypts the message using a key that is shared only with the recipient's device. The encrypted message travels through the service provider's servers, but it remains unreadable to them. Only the recipient's device possesses the corresponding key to decrypt and read the message. This model provides a high degree of privacy and security, making it difficult for governments, hackers, or even the platform itself to snoop on conversations.

Contrast this with other models, such as transport layer security (TLS) encryption, which encrypts messages only while they are in transit between the user's device and the service provider's servers. While important for preventing eavesdropping during transmission, TLS does not protect messages once they arrive at the server. The service provider can access and potentially read messages stored on their servers if they are not also encrypted end-to-end.

Given Musk's stated ambition for X DMs to rival privacy-focused apps, the specific implementation of XChat's encryption is critical. The "Bitcoin-style encryption" comment, while perhaps intended to evoke a sense of cutting-edge security, has instead created ambiguity. If XChat does not implement true E2EE, it would fall short of the privacy guarantees offered by competitors like Signal or WhatsApp (which uses Signal's protocol by default). Users concerned about privacy will likely scrutinize the technical details of XChat's encryption as they become available.

Competitive Landscape and X's Strategy

The messaging app market is highly competitive, dominated by giants like WhatsApp, Facebook Messenger, WeChat, Telegram, Signal, and Apple's iMessage. Each platform offers a varying mix of features, user bases, and security models. X, traditionally known as a public microblogging platform, has been working to expand its private messaging capabilities for years, but its DMs have historically lacked the advanced features and perceived security of dedicated messaging apps.

The introduction of XChat with features like vanishing messages, file sharing, and integrated calls is a clear attempt to close this gap. By enhancing the utility of DMs, X hopes to keep users within its ecosystem for more of their communication needs, supporting the "everything app" vision. This strategy aims to increase user engagement and potentially open up new avenues for monetization.

However, building trust in a platform's security and privacy takes time and transparency. The confusion surrounding the "Bitcoin-style encryption" claim could potentially hinder user adoption among privacy-conscious individuals. For XChat to truly compete with established secure messaging apps, it will need to demonstrate a clear, technically sound approach to encryption, ideally adopting a widely recognized and audited E2EE protocol.

The Road Ahead for XChat

As XChat rolls out to a wider audience, its success will depend on several factors:

  • **Technical Performance:** Can the new architecture handle the load of millions of users sending messages, sharing files, and making calls without experiencing the kind of instability seen recently on the platform?
  • **Security and Privacy:** Will X provide more detailed technical specifications about its encryption implementation? Will it undergo independent security audits? The clarity on the "Bitcoin-style encryption" is essential for building user trust.
  • **User Adoption:** Will users embrace XChat as a primary messaging tool, or will they continue to rely on dedicated messaging apps? The feature set is competitive, but user habits are hard to change.
  • **Feature Parity:** Will XChat continue to evolve and add features expected in modern messaging apps, such as group call capabilities, richer message formatting, and integrations?

The rollout of XChat represents a significant step in X's evolution, aiming to transform its direct messaging from a basic feature into a core communication pillar. The inclusion of modern features like vanishing messages, file sharing, and audio/video calls is a necessary move in the competitive social and messaging landscape. However, the technical details, particularly regarding encryption, remain a point of contention and will be crucial in determining whether XChat can establish itself as a truly secure and private communication alternative alongside the industry leaders.

The coming weeks, as XChat becomes available to more users, will provide a clearer picture of its stability, performance, and the actual implementation of its security features. For now, the promise of enhanced DMs on X is tempered by questions surrounding the technical claims and the platform's recent operational challenges.