- Elon Musk unveiled XChat, promoting “Bitcoin-style encryption” along with new features.
- Samson Mow corrected Musk, emphasizing that Bitcoin uses signatures, not encryption.
- Bitcoin ensures security through public keys, without hiding the transaction data.
Elon Musk has announced the rollout of XChat, a new messaging platform featuring encryption, vanishing messages, file sharing capabilities, and audio/video calling. However, his claim of the platform using “Bitcoin-style encryption” drew a quick correction from Bitcoin expert Samson Mow.
In an X post, Musk described XChat as “built on Rust with (Bitcoin style) encryption, a whole new architecture,” and suggested the platform uses cryptographic methods similar to those used in Bitcoin’s network. However, JAN3 CEO and Bitcoin expert Samson Mow quickly responded, stating that Bitcoin isn’t encrypted. He pointed out that Bitcoin’s security model doesn’t rely on encryption for transaction processing, but on digital signatures.
Digital signatures versus encryption
Notably, Bitcoin uses the Elliptic Curve Digital Signature Algorithm (ECDSA) for authentication and ownership verification, rather than encryption for data protection. Further, it focuses on securing transactions through 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.
Mow’s clarification emphasizes that Bitcoin transactions are publicly visible on the blockchain, with security derived from the impossibility of forging valid signatures without private keys. This transparency is fundamental to Bitcoin’s design as a public ledger system.
The distinction matters because encryption typically hides information from unauthorized parties, while Bitcoin proves authenticity without concealing transaction details. All Bitcoin transactions are publicly auditable, which contrasts with encrypted systems that hide data content.
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Musk’s reference to “Bitcoin-style encryption” likely shows a common misunderstanding about how Bitcoin achieves security. While Bitcoin does use cryptographic principles, it focuses on authentication and integrity rather than confidentiality through encryption.
Notably, if XChat follows Bitcoin’s cryptographic approach, it would likely use similar signature schemes for authentication and at the same time, add separate encryption layers for message privacy. If both methods are used, it would combine Bitcoin’s authentication methods with traditional encryption for data confidentiality.
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