Elon Musk Launches XChat Inspired by Bitcoin

Elon Musk has officially unveiled XChat – a new messaging feature on the X platform, equipped with end-to-end encryption inspired by Bitcoin and developed using the Rust programming language. XChat promises to set a new standard for digital communication security and privacy.

XChat Adopts Bitcoin-Inspired Encryption Standards

Ahead of its commercial rollout, Elon Musk confirmed that XChat will utilize a “Bitcoin-style” encryption model to enhance security. While technical specifics were not disclosed, it is likely that XChat will use the SHA-256 encryption standard – the same cryptographic foundation used by Bitcoin – assigning each user a unique public and private key pair.

In a further demonstration of its security-first approach, XChat is built using Rust, a programming language known for its high security and performance.

Beyond its secure architecture, XChat introduces several advanced features including audio and video calls without the need for phone numbers, and disappearing messages for added privacy – placing it in direct competition with apps like Signal and Telegram. Musk stated, “You can make audio/video calls without a phone number, across all platforms.”

Currently in beta testing, XChat is only available to premium users. Musk also clarified that no agreement has been signed with Telegram regarding xAI integration. Upon its full release, XChat is expected to compete for market share with WhatsApp, Signal, and Telegram.

Tesla Still Holds the Largest Bitcoin Balance Among Corporations

Although Musk is publicly fond of Dogecoin, his support for Bitcoin remains strong. According to Arkham, Tesla currently holds $1.25 billion worth of Bitcoin, an investment it has maintained since 2021.

Musk has also expressed support for the establishment of a U.S. Strategic Bitcoin Reserve, having been present at the signing of a related Executive Order.

Following Musk’s post about XChat’s encryption standards, Bitcoin’s price rose nearly 2% within hours. Previously, BTC had dropped 8% to $103,000, flirting with the $100,000 mark, but it has since rebounded and is now trading above $105,000.