Musk’s reference to “Bitcoin-style encryption” has sparked debate within the cryptocurrency and cybersecurity communities. While Musk has promoted the new encryption approach, several experts have clarified how Bitcoin’s technology works. Samson Mow, CEO of JAN3, pointed out that “Bitcoin isn’t encrypted,” and core developer Luke Dashjr noted, “Bitcoin doesn’t even use encryption.”
secures transactions through digital signatures and elliptic curve cryptography, not encryption. This system enables users to securely demonstrate ownership of Bitcoin and facilitate payments without disclosing sensitive data. Using SHA-256 hashing, the Bitcoin protocol ensures that transactions are genuine and IDs are issued. However, the blockchain is public and shows all transaction information.
Other experts, including Assistant Professor Ian Miers at the University of Maryland, have questioned the accuracy of using the term “Bitcoin-style encryption” for a messaging app. Miers pointed out that Bitcoin focuses more on signatures than encryption, so labeling it as such is misleading. Despite the details behind these debates, XChat’s success demonstrates that many users want privacy when engaging in digital communication.
