Elon Musk has announced the launch of a new encrypted messaging platform called XChat, which also allows for file sharing and audio/video calls. The billionaire added that the platform uses “Bitcoin-style Rust encryption.”
CEO of JAN3 and Bitcoin Expert Samson Moe objected that in reality Bitcoin is not encrypted. According to him, Bitcoin’s security model relies not on encryption to process transactions, but on digital signatures.
In particular, the Bitcoin uses the elliptic curve digital signature algorithm for authentication and ownership verification, rather than encryption to protect data.
Blockchain focuses on securing transactions using public-key cryptography, allowing users to sign transactions and prove ownership of funds without encrypting the underlying transaction data. This system allows the blockchain to remain transparent and maintain security through mathematical proof rather than hidden information.
Samson Moe emphasized that Bitcoin transactions are public and visible on the blockchain, and this transparency is fundamental to the Bitcoin network as a public ledger system.
Encryption typically hides information from unauthorized parties, so Musk’s talk of «Bitcoin-style encryption» highlights a common misconception about how Bitcoin anonymous. It focuses more on authentication and integrity rather than privacy through encryption.
XChat will likely use similar signature schemes for authentication while adding separate encryption layers for message privacy. This will combine Bitcoin’s solutions with traditional encryption of sensitive data.
