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    Home»Cryptocurrency»Elon Musk Faces Backlash Over ‘Bitcoin-Style Encryption’ Claim in XChat Launch
    Cryptocurrency

    Elon Musk Faces Backlash Over ‘Bitcoin-Style Encryption’ Claim in XChat Launch

    Finance Insider TodayBy Finance Insider TodayJune 2, 2025No Comments3 Mins Read
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    Elon Musk’s newest announcement a few new encrypted messaging characteristic on X has ignited a firestorm, not for the characteristic itself, however for his baffling description of its underlying tech.

    On June 1, the X proprietor revealed by way of his official account on the social platform that the brand new XChat has been “constructed on Rust with (Bitcoin fashion) encryption.”

    Why Specialists Say “Bitcoin-Fashion Encryption” is Nonsense

    Shortly after Musk’s post, a flood of commentary emerged, difficult the accuracy of his terminology. Notably, Bitcoin advocate Udi Wertheimer responded bluntly:

    “Bitcoin actually doesn’t have any encryption in it by any means.”

    The Taproot Wizards co-creator adopted up by explaining that BTC makes use of cryptographic hashing and signing, that are important for verifying knowledge integrity and possession, however don’t conceal messages, a key perform of encryption.

    “Encryption is when you have got a message and need to preserve it secret. Nothing within the Bitcoin protocol is encrypted… It’s all open, clear, and viewable by anybody.”

    Including to the refrain, cryptographer Ian Miers pointed out Bitcoin’s lack of privateness, likening it to a social media platform for financial institution accounts. “Every thing you do is broadcast publicly,” he acknowledged. “It’s the alternative of personal.”

    The Zcash co-founder burdened that BTC transactions depend on signatures for authentication, moderately than encryption for secrecy. He additional critiqued the vagueness of Musk’s assertion, writing:

    “For sure, ‘Bitcoin fashion’ and ‘Rust’ are usually not descriptions of an encryption scheme, nor are they robust indicators of safety for a messaging app.”

    Nevertheless, a number of different voices supported the Tesla CEO, with some guessing that he could have meant SHA-256 hashing. Pc engineer Wei Dai additionally supplied a charitable interpretation, suggesting that Musk may need equated “Bitcoin-style” with “peer-to-peer” or “end-to-end” encryption. Nevertheless, this concept did not make clear what encryption protocols XChat truly makes use of, and such ambiguity solely added gas to the fireplace.

    Musk Below Scrutiny

    The continuing debate comes amid broader concern surrounding Musk’s management. Only a month in the past, Tesla was pressured to concern a public denial following claims by the Wall Avenue Journal that the electrical automobile producer was out there for a brand new CEO.

    This was supposedly on account of investor unease over the 53-year-old’s controversial political engagements and erratic on-line habits. The Tesla board responded, reaffirming its full confidence in Musk’s management.

    This newest episode with XChat dangers additional undermining the outspoken billionaire’s credibility amongst technologists. As pseudonymous developer Yueya.eth aptly put it: “Advertising and marketing groups love throwing round crypto buzzwords with out understanding fundamentals.” And in an ecosystem the place language and accuracy construct belief, the Boring Firm founder’s obscure phrasing could trigger extra confusion than hype.

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