Crypto

Musk’s New XChat Employs ‘Bitcoin-Like’ Encryption—Implications Explained

Unveiling the Next Generation of XChat: A Revolutionary Leap

In a significant announcement, Elon Musk revealed on X that a new version of XChat is set to launch, featuring advanced encryption, disappearing messages, and the capability to send a wide range of files. This innovative platform will also support audio and video calls across all devices without requiring a phone number. Built on Rust, the architecture incorporates Bitcoin-style encryption, promising a cutting-edge overhaul for secure communication.

Early Access for Premium Users

By Monday morning, X engineers had initiated the rollout for Premium subscribers. According to a company memo obtained by Business Insider, early versions require a four-digit passcode to access each chat. Once the rollout stabilizes, these features will be extended to all user tiers, enhancing the platform’s security and usability.

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Understanding the “Bitcoin-Style” Encryption

While Musk didn’t elaborate on the specifics of “Bitcoin-style” encryption, it hints at a robust security framework. Bitcoin’s blockchain is not encrypted, yet it is authenticated and decentralized through advanced cryptographic techniques. These include the secp256k1 elliptic curve and ECDSA/Schnorr signatures. These cryptographic tools are essential in BIP 324, a proposed transport layer that secures peer-to-peer communication using an Elliptic-Curve Diffie-Hellman handshake followed by ChaCha20-Poly1305 encryption. This proposal is gradually being integrated into Bitcoin Core.

The Rust libraries implementing these cryptographic protocols, such as rust-secp256k1, have been rigorously examined within the Bitcoin ecosystem. They facilitate a secure, low-latency communication channel ensuring forward secrecy. This design aligns seamlessly with Musk’s vision for XChat, offering encrypted communications, ephemeral messaging, and an identity system independent of phone numbers.

Core contributor James O’Beirne has emphasized the importance of transport-layer encryption for true censorship resistance. Olaoluwa Osuntokun, co-founder of Lightning Labs, noted on the Bitcoin Optech podcast that BIP 324 significantly enhances privacy by obscuring link-level metadata.

If XChat adopts the secp256k1-based handshake as detailed in BIP 324, it could achieve forward secrecy and low-latency performance similar to Lightning-network protocols. However, as of now, no independent audit of XChat’s source code has been conducted, leaving its precise cryptographic structure unverified.

Exploring the Musk-Bitcoin Connection

Musk’s decision to label the upgrade as “Bitcoin-style” is not just symbolic. In February 2021, Tesla disclosed a $1.5 billion Bitcoin investment as part of its reserve management strategy. Despite selling a significant portion in Q2 2022, Tesla still holds around 10,725 BTC, as per its latest shareholder letter.

Musk has shown support for the Bitcoin ecosystem beyond financial investments. In 2021, he initiated the short-lived “Bitcoin Mining Council” to promote discussions on renewable energy in mining.

As of the latest reports, Bitcoin is trading at $104,879, reflecting its ongoing volatility and market interest.

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Emma Horvath

After graduating Communication and Media Studies MA in Eötvös Loránd University, Emma started to realize that her childhood dream as a creative news reporter committed to find dynamic journalism stories. I'm a passionate journalist with a keen interest in the fast-evolving world of cryptocurrencies. I've been reporting on the latest developments in the crypto industry for several years now, covering breaking news and providing insights on how the market is trending. I'm adept at analyzing daily market movements, researching ICOs, and keeping track of the latest innovations in blockchain technology. My expertise in the space makes her a trusted voice in the crypto community. Whether it's the latest Bitcoin price movements or the launch of a new DeFi platform, I am always at the forefront, bringing her readers the most up-to-date and informative news.

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