Alex Vacca Profile picture
Aug 20 17 tweets 5 min read Read on X
Meta, Google, and Microsoft all use encryption built by the same 50-person nonprofit.

Zero revenue from 2 billion users. The founder uses a fake name. And when the FBI subpoenaed them, they only provided 2 pieces of data.

Here's how a non-profit secures the internet🧵
In 2013, a tiny nonprofit had just 3 developers building encrypted messaging that no government could crack.

Their leader went by "Moxie Marlinspike" - not his real name.

WhatsApp founders were tracking their journey. Image
2014: WhatsApp sells to Facebook for $19 billion.

But the founders, Brian Acton and Jan Koum, are privacy hardliners. They partnered with Moxie's 3-person nonprofit to integrate military-grade encryption.

Facebook had no idea what was coming... Image
For 2 years, WhatsApp quietly rebuilds its entire messaging system around their protocol.

April 2016: 1B users wake up to this notification:

"Messages are now secured with end-to-end encryption"

A 3-person nonprofit just protected 1/7th of humanity.

Then the FBI showed up...
2016: FBI subpoenas Signal for user data in a criminal case.

Signal's entire response:
- Date account created
- Last connection time

That's it. No messages. No contacts. No call logs.
They literally CAN'T provide what they don't have.

Every tech giant was watching. Image
July 2016: Facebook Messenger adds Signal Protocol
2016: Google integrates it
2018: Skype adopts it

Trillion-dollar companies all chose the same nonprofit's encryption.

Why? Because Signal invented something thought impossible...
The "Double Ratchet" - a method where every single message gets a unique encryption key.

Think of it like a lock that changes itself after each use.

Crack today's key? You get ONE message. That's it.

But the real magic is what happens if you get hacked... Image
"Post-compromise security" - if a hacker steals your keys RIGHT NOW, Signal's protocol heals itself.

After a few messages, they're locked out again. The system literally repairs its own security breaches.

But Facebook didn't want this, which led to a cold war. Image
2017: Facebook was pushing to monetize WhatsApp. Add ads. Mine data.

Essentially...break the privacy promise.

Brian Acton fought back. He wanted to uphold privacy, but ultimately loses.

He faced a choice: Stay and collect $850 million in unvested stock, or walk away...
Acton walks.

Leaves $850 MILLION on the table rather than betray user privacy.

2018: He takes $50 million of his own money and creates the Signal Foundation with Moxie.

Zero ads. Zero data collection. Zero investors. How do they survive? Image
No ads. No data collection. No shareholders. Pure nonprofit.

Running Signal costs $50M/year:
20 million gigabytes of bandwidth
SMS verification codes
50 employees

Jack Dorsey sends $1M annually. Users donate $5/month.

When governments tried to break them, Signal drew a line... Image
UK's Online Safety Bill demanded apps scan encrypted messages for illegal content.

Signal's response: "We'll leave the UK before we break encryption."

WhatsApp backed them. The UK government had to choose. Image
UK backed down.

They admitted the technology to scan encrypted messages "doesn't exist" without destroying privacy.

A 50-person nonprofit made the British government blink.

But Signal's already fighting the next war.
2023: Signal implements quantum-resistant encryption.

Why? Adversaries are recording messages TODAY to decrypt in 10+ years when quantum computers arrive.

Signal's PQXDH protocol uses dual encryption. Even future quantum computers can't break both. Image
The entire Signal Protocol is open source.

Any researcher can verify it. Any competitor can copy it.

Total transparency. Zero security through obscurity.

That's how a nonprofit accidentally secured the internet...
Thanks for making it to the end!

I'm Alex, co-founder at ColdIQ. Built a $6M ARR business in under 2 years.

We're a remote team across 10 countries, helping 400+ businesses scale through outbound systems. Image
RT the first tweet if you found this thread valuable.

Follow me @itsalexvacca for more threads on technology, outbound and GTM strategy, AI-powered sales systems, & how to build profitable businesses that don't depend on you.

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More from @itsalexvacca

Aug 18
Everyone laughed at Nadella’s “crazy” $26B LinkedIn purchase.

Now it drives more SaaS revenue than some entire Fortune 500 firms.

$200B+ in value from one move.

Here’s how Satya Nadella quietly made Microsoft’s smartest acquisition ever: 🧵 Image
2014: Satya Nadella became Microsoft’s 3rd CEO.

The company was worth $300B
Windows sales were flat
Cloud growth was slow

He needed a bold bet to pull Microsoft out of its comfort zone.

And it would come from the last place people expected… Image
Nadella’s vision: make Microsoft the “connective tissue” for every worker on the planet.

That meant owning both the tools and the audience.

He had ONE platform in mind...

A platform most analysts didn’t think was worth touching.
Read 17 tweets
Aug 14
In 1936, an airplane engineer discovered a formula that would predict 99.6% collapse in solar panel prices.

It's the same formula that explains why EVs will be 50% cheaper than gas cars by 2030, and why AI training costs are dropping 65% a year.

Here's how it works🧵 Image
Theodore Wright was studying airplane manufacturing in 1936 when he noticed a pattern.

Every time total production doubled, labor costs dropped by 10-15%.
Not sometimes. Every single time.

He had no idea he'd just discovered the formula that would predict every tech cost curve for the next century.Image
The formula: When cumulative production doubles, costs drop by a fixed percentage.

Solar panels: 20% drop per doubling
Lithium batteries: 19% drop per doubling
AI training hardware: 37% drop per doubling

But nobody believed this could hold for 40+ years straight. Until...
Read 19 tweets
Aug 8
Out of 9,000 companies at YC, only 164 (1.82%) went on to become unicorns.

Whereas the hit rate for Thiel Fellowship is 13.79% (40 out of 290 companies became unicorns).

These companies together control >$220 Billion in market cap. The question is how?

Thread Image
First, look at some of the companies founded during Thiel Fellowship:

• Ethereum: $450 Billion
• Figma: $68 Billion
• Ramp: $16 Billion
• OYO Rooms: $9 Billion
• Scale AI: $7 Billion Image
Peter Thiel started the fellowship due to his hate for colleges.

According to Thiel, colleges only mean 2 things for people:

• It's an investment against the societal failure
• Its credential-based system gives people the feeling of joining an elite group
Read 13 tweets
Aug 6
Tech debt almost killed Notion. With only a few weeks' runway left, the founders left SF, moved to Kyoto, & rewrote the entire app.

No launch. No hype. Just a quiet resurrection. Today, Notion's worth $10B.

Their monk-mode product strategy every founder should study: Image
Image
Notion was dead in 2015.

The app crashed constantly. Users lost their work. The code was so broken they couldn't ship new features. Investors walked away.

The founders fired everyone to save money. Cash was almost gone.

Then they made a decision that changed everything... Image
Ivan Zhao and Simon Last bought one-way tickets to Japan.

Shut down their SF office. Moved into a tiny Kyoto apartment with paper-thin walls. Nobody spoke English. They didn't speak Japanese.

Nothing to do but code.
They called it "monk mode." Image
Read 20 tweets
Aug 4
Before AWS existed, one company ran the servers for Twitter, LinkedIn, and Facebook's entire app ecosystem.

They owned Node.js, invented containers 8 years before Docker, and Peter Thiel even backed them.

Then something happened...
In 2004, a cancer researcher turned entrepreneur named Jason Hoffman started a cloud company called Joyent.

While Amazon was still figuring out AWS, Joyent was already hosting the internet's hottest startups.

Their client list would make your jaw drop. Image
Twitter's early infrastructure ran on Joyent servers.

LinkedIn scaled on Joyent.

When Facebook opened to third-party apps in 2007, Joyent partnered with Dell to host them all.

But that's not even the craziest part. Image
Read 18 tweets
Jul 31
Facebook once bought a VPN app for $120M and turned it into a surveillance tool that spied on 33M+ users' entire phones for years.

This app helped Zuck buy WhatsApp for a whopping $19B and break Snapchat's encryption.

Thread
The name of this Israeli app was Onavo.

It promised to “secure your data” and reduce mobile data usage.

When Facebook bought it in 2013, Zuck said the app would help them connect more people to the internet.

Facebook even promised to keep Onavo running as a standalone brand. Image
But Onavo operated as a VPN that routed all your phone's internet traffic through Facebook's servers before sending it anywhere else.

Facebook could see:

• Every app you opened
• How long you used it
• Which websites you visited
• And at what time you used each app
Read 13 tweets

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