Jack Dorsey, the CEO of financial technology firm Block (XYZ), is challenging Meta Platforms (META) with the launch of a new messaging app that’s meant to rival WhatsApp.
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Dorsey has publicly launched “Bitchat,” a new decentralized, peer-to-peer messaging app that works entirely over Bluetooth mesh networks, with no internet, central servers, phone numbers, or emails required. The Block boss, who also co-founded X, formerly Twitter, says that Bitchat is now available in a beta version and is live on TestFlight, with a full white paper available on GitHub.
On social media, Dorsey said that Bitchat is meant as an experiment in “Bluetooth mesh networks, relays and store and forward models, message encryption models, and a few other things.” The new messaging service enables encrypted communication between nearby devices without an internet connection. Rather, users’ phones form local Bluetooth clusters that pass messages from device-to-device.
Meta Threat
Analysts were quick to point out that Dorsey’s Bitchat appears to be a direct challenge to Meta Platforms’ popular WhatsApp, as well as its Messenger app. Unlike mainstream messaging platforms such as WhatsApp that are owned and built by big technology companies and rely on personal data, Bitchat operates entirely peer-to-peer with no accounts, no identifiers, and no data collection.
Dorsey has said that the privacy offered by Bitchat is its main appeal. Like the Bluetooth-based apps used during many political protests around the world, Bitchat is designed to keep working even when the internet is blocked, offering a censorship-resistant way to stay connected during outages, shutdowns, or surveillance, says the Block CEO.
Dorsey added that a future update will add WiFi Direct to Bitchat, increasing its speed and range.
Is META Stock a Buy?
The stock of Meta Platforms has a consensus Strong Buy rating among 46 Wall Street analysts. That rating is based on 42 Buy and four Hold recommendations issued in the past three months. The average META price target of $723.72 implies 0.36% upside from current levels.
