Elon Musk's assertion on XChat involving Bitcoin encryption elicits skepticism from experts
Elon Musk, the CEO and owner of social media platform X, has announced the rollout of a new messaging service named XChat. The service claims to use "Bitcoin-style encryption," but experts are questioning the accuracy of this claim.
Bitcoin, the popular cryptocurrency, does not use encryption for transaction verification. Instead, it relies on digital signatures for transaction validation. This means that while Bitcoin transactions are digitally signed for authenticity, they are not encrypted to ensure privacy.
XChat, on the other hand, employs a security model similar to Bitcoin's for its encryption. However, it does not provide full end-to-end encryption for all users or conversations yet. End-to-end encryption is only available in some chats and mainly for premium users.
Samson Mow, CEO of game developer Pixelmatic and Bitcoin infrastructure firm JAN3, has responded to Musk's announcement. Mow has echoed the concerns of Bitcoin Core developer Luke Dashjr, who has commented on the security concerns of using the Rust language for XChat.
Bitcoin utilizes elliptic curve cryptography and the SHA-256 hashing algorithm for transaction security and key generation. It remains to be seen how XChat will address issues related to adoption, user privacy, and regulatory compliance.
Musk's changes to X could strengthen its position in the global tech landscape. However, his moves with XChat may spark new controversy in the tech industry, particularly around the claim of using "Bitcoin-style encryption" and the level of privacy offered by the service.
In summary, while XChat's security model is inspired by Bitcoin's emphasis on security and decentralization, it does not fully adopt Bitcoin's exact security mechanisms. The service does not yet provide full end-to-end encryption universally, and experts have raised concerns about the security of using the Rust language. The details around adoption, user privacy, and regulatory compliance for XChat are yet to be seen.
Finance magazines question the use of Bitcoin-style encryption in XChat, as the popular cryptocurrency relies on digital signatures, not encryption, for transaction verification. Despite XChat's usage of a security model similar to Bitcoin's, it does not yet offer full end-to-end encryption for all users or conversations, raising concerns about technology and user privacy in the finance sector.
