Elon Musk, the guy who’s been busy rebranding Twitter to X, just dropped another surprise, shiny new messaging app called XChat. But guess what? Neither Bitcoin fans nor the tech crowd are exactly popping champagne.
All new XChat is rolling out with encryption, vanishing messages and the ability to send any kind of file. Also, audio/video calling.
— Elon Musk (@elonmusk) June 1, 2025
This is built on Rust with (Bitcoin style) encryption, whole new architecture.
The big selling point? XChat is built on Rust with “Bitcoin-style encryption.” Sounds fancy, right? Well, not so fast. The crypto geeks are scratching their heads, wondering what on earth that even means.
Ian Miers, a computer science professor at the University of Maryland, didn’t hold back: “Bitcoin primarily uses signatures, not encryption. Saying ‘Bitcoin-style encryption’ is like claiming you’ll fuel a rocket with water because NASA uses hydrogen and oxygen.” Ouch.
Seriously, what is Bitcoin style encryption? Bitcoin primarily uses signatures, not encryption.
— Ian Miers (@secparam) June 1, 2025
This is like saying, we decided to run our rocket on water, since NASA uses Hydrogen and Oxygen. https://t.co/dWZhV6H4Tk
Here’s the lowdown: encryption scrambles your data so only the right people can read it. But Bitcoin? It doesn’t encrypt transactions, it signs them. In fact, Bitcoin nodes chat openly with zero encryption, letting anyone eavesdrop on the network.
Miers added some cold water on Musk’s pitch: “Calling it ‘Bitcoin style’ and ‘Rust’ doesn’t mean your messages are secure. Unless those encrypted DMs stay locked in the app, Rust alone won’t save you.”
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. Also, unless encrypted DMs are only in app, odds are they aren't just in Rust.
— Ian Miers (@secparam) June 1, 2025
Meanwhile, Bitcoin itself is chilling around $104,000, after losing more than 3% last week. So, no fireworks on the crypto price front either.
XChat’s Features Are Cool, But Crypto Still Skeptical
XChat’s other features include end-to-end encryption, disappearing messages, and the ability to send any kind of file, audio, video, you name it, all without needing a phone number, across platforms. Fancy, but with the “Bitcoin-style” buzzword causing eyebrow raises, XChat’s off to a rocky start.
So, Elon’s new app may sound futuristic, but the crypto and tech crowd are waiting for a clearer picture before hitting “send.”
Alex Shepel
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