- XChat launch by Elon Musk features a new encryption model.
- Casts doubt from crypto experts over technical accuracy.
- Minimal impact on cryptocurrency market observed.
The introduction of XChat underscores Musk’s commitment to expanding messaging services on the platform, but experts question the accuracy of “Bitcoin-style encryption.”
Elon Musk, CEO of X, announced XChat, highlighting a new encryption model built in Rust. Industry experts, including Luke Dashjr and Ian Miers, challenged the claim of “Bitcoin-style encryption.” Miers noted Bitcoin uses cryptographic signatures, not encryption, suggesting possible confusion in terminology. As Ian Miers pointed out, Bitcoin primarily uses signatures, not encryption. … ‘Bitcoin style’ and ‘Rust’ are not descriptions of an encryption scheme, nor are they strong indicators of security for a messaging app.
Despite the launch, there has been no direct market impact on major cryptocurrencies like Bitcoin or Ethereum. The debate centers on technical definitions rather than market dynamics. Historical precedents show minimal market reaction to similar privacy feature announcements unless cryptocurrency integration follows.
XChat’s launch may lead to further scrutiny concerning encryption methodologies in tech solutions. The skepticism from experts indicates potential challenges in user adoption, considering past data breaches on the X platform. More clarity from X on technical specifications could influence user trust and platform security reliability.