Bitcoin News Today: Bitcoin Gains Brain: EVM Turns Meme Coin Base Into Smart Contract Powerhouse

The BRC-20 token protocol on the Bitcoin blockchain has reached a pivotal milestone with the completion of its upgrade to BRC-2.0 at block height 912,690. This update introduces direct integration of the Ethereum Virtual Machine (EVM), a first in the Bitcoin ecosystem that enables native token interaction with programmable smart contracts without the need for bridges or custodial intermediaries. The upgrade, spearheaded by Ordinals developers such as Best in Slot and BRC-20 creator Domo, enhances the protocol’s functionality by transforming the original BRC-20 "calculator" into a Turing-complete virtual machine. This development aligns Bitcoin’s token layer with Ethereum’s composability, allowing for the deployment of decentralized finance (DeFi) protocols, NFT marketplaces, and synthetic asset systems directly on Bitcoin’s base layer [1].

Since its inception in 2023, BRC-20 has facilitated over $3 billion in cumulative volume, although much of this activity has been concentrated in meme coin speculation. However, with the BRC-2.0 upgrade, the protocol now supports the creation of more sophisticated financial instruments. “One of the main goals of BRC-2.0 is to bring Ethereum’s diverse application ecosystem onto Bitcoin. Adoption of Bitcoin assets has been stifled because there are no dApps, only memes. That changes today,” said Eril Ezeril, CEO of Best in Slot. The upgrade positions BRC-2.0 as a direct competitor to other token frameworks such as Runes, which remains non-programmable and confined to simpler use cases [1].

Strategically, the integration of EVM into the Bitcoin blockchain bridges two foundational pillars of decentralized finance: the security and decentralization of Bitcoin and the composability of Ethereum. Developers can now deploy Ethereum-style smart contracts and decentralized applications (dApps) while leveraging the immutability and censorship resistance of Bitcoin’s proof-of-work consensus. This fusion of capabilities is expected to attract a new wave of developers who previously favored Ethereum for its programmable infrastructure [2]. However, the Bitcoin network still faces challenges related to throughput and scalability, processing only seven transactions per second, which limits its ability to handle large volumes of smart contract activity [1].

In parallel with BRC-2.0, projects such as Bitcoin Hyper are addressing Bitcoin’s scalability limitations by operating as a Layer-2 solution. Bitcoin Hyper integrates the Solana Virtual Machine to enable faster dApps and DeFi protocols that settle back onto the Bitcoin blockchain. This hybrid approach aims to combine the speed and efficiency of Solana’s infrastructure with the security of Bitcoin’s proof-of-work chain. The project, which has attracted over $13.2 million in presale commitments, represents a growing narrative around Bitcoin as a scalable, programmable asset rather than just a store of value [1].

Analysts suggest that these developments could significantly enhance the role of Bitcoin in decentralized finance. The ability to execute complex smart contracts directly on Bitcoin’s base layer could increase the token’s utility, particularly for institutional investors seeking to stake, lend, and transact in BTC at real-time speeds. As programmability becomes more embedded in Bitcoin’s infrastructure, the network may evolve into a more versatile platform for financial innovation, further cementing its position as a foundational asset in the decentralized economy [1].

Source:

[1] Bitcoin's BRC-20 Token Standard Completes Upgrade to BRC-2.0 (https://99bitcoins.com/news/presales/bitcoins-brc-20-token-standard-completes-upgrade-to-brc-2-0-with-evm-integration/)

[2] Bitcoin-Blockchain erhält EVM-Integration für Smart Contracts (https://www.it-boltwise.de/bitcoin-blockchain-erhaelt-evm-integration-fuer-smart-contracts.html)