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Bitcoin has taken a significant step toward interoperability and programmability by integrating the
Virtual Machine (EVM) into its BRC-20 token protocol. Dubbed BRC2.0, the upgrade was activated at block height 912,690 and introduces smart contract capabilities directly on the network. This development is being hailed as a pivotal moment in Bitcoin’s evolution, enabling the creation of decentralized applications (dApps) and expanding the use cases of Bitcoin-native tokens beyond simple transactions and speculative assets.The integration of EVM into BRC-2.0 was spearheaded by Best in Slot, a blockchain infrastructure company, in collaboration with BRC-20’s pseudonymous creator
and the Layer 1 Foundation. According to Best in Slot’s CEO, Eril Binari Ezerel, the upgrade transforms the BRC-20 protocol’s "calculator-style" indexer into a Turing-complete system, allowing developers to deploy smart contracts and build dApps on the Bitcoin network without relying on external bridges or wrapped tokens.This move marks a departure from the prior limitations of Bitcoin’s token ecosystem, where BRC-20, built on the Ordinals protocol, functioned more as a data inscription mechanism than a programmable platform. With EVM support, developers can now create and interact with Bitcoin-native tokens using Ethereum-based development tools and standards. This compatibility is expected to facilitate the growth of decentralized finance (DeFi) applications, lending platforms, and automated trading protocols directly on the Bitcoin chain.
The BRC-20 protocol, which launched in 2023, has already seen substantial activity, with over $3 billion in assets traded. However, its adoption had previously been constrained by the lack of smart contract functionality. BRC2.0 aims to address this by enabling composability—allowing different tokens and dApps to interact seamlessly in ways that were previously impossible. This is expected to attract more developers and entrepreneurs to the Bitcoin ecosystem, accelerating the transition from speculation-driven token activity to real-world application development.
Industry observers have noted that BRC2.0 positions Bitcoin to compete more directly with other token protocols like Runes, which do not offer the same level of programmability. “BRC-2.0 will be capable of supporting a DeFi ecosystem,” said Asher Corson, CIO of Unbroken Chain, a fund in the Ordinals space. The upgrade also aligns with growing interest in Bitcoin's utility beyond its role as a store of value, as evidenced by the emergence of alternative standards such as Alkanes, which use WebAssembly (WASM) for smart contract execution.
The BRC2.0 upgrade is seen as a bridge between two foundational pillars of the blockchain world: Bitcoin’s unparalleled security and decentralization and the EVM’s proven ability to power programmable applications. Domo, the creator of BRC-20, described the goal as offering users the Ethereum experience—composability and programmability—while securing those capabilities on the Bitcoin network. This integration could ultimately redefine Bitcoin’s role in the broader blockchain ecosystem, shifting the focus from speculation to innovation and real-world utility.
Source: [1] Bitcoin News: BRC20 Enables EVM-Style Smart Contracts ... (https://www.coindesk.com/tech/2025/09/01/bitcoin-token-protocol-brc20-enables-evm-style-smart-contracts-with-brc2-0) [2] BRC2.0 Upgrade Brings EVM and Smart Contracts Directly ... (https://coincentral.com/brc2-0-upgrade-brings-evm-and-smart-contracts-directly-to-bitcoin/) [3] Bitcoin-native protocol BRC-20 integrates EVM ... (https://www.fxstreet.com/cryptocurrencies/news/bitcoin-native-protocol-brc-20-integrates-evm-compatibility-following-upgrade-202509020354)

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