Bitcoin News Today: Bitcoin Gains Ethereum's Brain in a Code Breakthrough

The BRC-20 protocol has introduced a pivotal upgrade that brings Ethereum-like features to the Bitcoin blockchain, marking a significant development in the evolution of Bitcoin’s programmability. The upgrade, referred to as BRC2.0, integrates the Ethereum Virtual Machine (EVM) into BRC-20’s core logic, enabling the execution of smart contracts. This enhancement was executed by Ordinals developer Best in Slot and BRC-20's pseudonymous creator Domo [1]. According to Best in Slot CEO Eril Binari Ezerel, this integration transforms BRC-20 into a Turing-complete protocol by upgrading the "calculator-style" indexer to include EVM capabilities [1].

The implementation of EVM functionality is a crucial advancement for BRC-20, as it allows for greater programmability and composability on the Bitcoin blockchain. BRC-20 itself is a token standard that enables the creation of fungible tokens on the Bitcoin network via the Ordinals protocol, which allows data to be inscribed on individual satoshis. The integration of EVM into BRC-20’s architecture means that Bitcoin can now support smart contracts with similar functionalities to those on Ethereum [1]. This development aligns with the broader trend of enhancing Bitcoin’s utility through innovations such as the Ordinals protocol, which has spurred significant ecosystem growth over the past two years [2].

The upgrade took effect at Bitcoin block 912,690, according to an announcement shared with CoinDesk. This marks a key milestone in the ongoing efforts to make Bitcoin more programmable while maintaining its core attributes of decentralization and security. BRC-20's creator, Domo, emphasized the significance of the upgrade, stating that the goal is to provide users with the Ethereum experience of programmability and composability, but secured by the Bitcoin network [1].

The BRC-2.0 upgrade also reflects the broader shift in the Bitcoin ecosystem from “TVL first” to a more innovation-driven approach. As outlined in a recent analysis by Waterdrip Capital, Bitcoin’s Layer 2 (L2) solutions are increasingly focusing on breakthroughs in security, efficiency, and native compatibility [2]. This shift is evident in the development of protocols such as RGB, BitVM, and ZK-Rollups, which aim to enhance Bitcoin’s capabilities without compromising its foundational principles [2].

From a technical perspective, the integration of EVM into BRC-2.0 represents a major step toward bridging the gap between Bitcoin and Ethereum. While Bitcoin has traditionally been limited in its scripting capabilities compared to Ethereum, the BRC-2.0 upgrade introduces a new level of flexibility. This development could attract developers and projects that previously considered Bitcoin’s limitations a barrier to adoption. The ability to execute complex smart contracts on Bitcoin’s blockchain may also encourage more diverse use cases, including decentralized finance (DeFi), non-fungible tokens (NFTs), and cross-chain interactions [1].

The timing of the upgrade also aligns with Bitcoin’s recent price performance, which has seen the asset reach all-time highs. However, tokens related to the Bitcoin ecosystem have not mirrored this success in secondary markets, suggesting that further innovation and adoption are needed [2]. The BRC-2.0 upgrade could serve as a catalyst for greater engagement with Bitcoin’s ecosystem, particularly as projects explore how to leverage Bitcoin’s security and decentralization while expanding its functionality.

In the broader context of Bitcoin’s L2 development, the BRC-2.0 upgrade is part of a larger trend of experimentation and competition among different technological pathways. These include the Lightning Network, RGB protocols, ZK-Rollups, and BitVM, each offering distinct approaches to scaling and programmability [2]. While the Lightning Network remains a mature solution for micropayments and off-chain settlement, other projects are exploring more complex use cases. The BRC-2.0 upgrade contributes to this landscape by introducing a new dimension of smart contract capability on the Bitcoin network [1].

Looking ahead, the success of the BRC-2.0 upgrade will depend on its ability to attract developers, users, and projects. The integration of EVM into BRC-20’s architecture provides a familiar environment for Ethereum developers, potentially lowering the barrier to entry for those interested in building on Bitcoin. Additionally, the upgrade’s focus on composability and programmability aligns with the growing demand for interoperable and modular blockchain solutions. As the Bitcoin ecosystem continues to evolve, the BRC-2.0 upgrade represents a significant step toward realizing the vision of a more programmable and versatile Bitcoin [1].

Source:

[1] Bitcoin token protocol BRC20 enables EVM-style smart contracts with BRC2.0 (https://www.coindesk.com/tech/2025/09/01/bitcoin-token-protocol-brc20-enables-evm-style-smart-contracts-with-brc2-0)

[2] The BTC Ecosystem Race: Who Will Emerge as the Ultimate (https://waterdripcapital.medium.com/the-btc-ecosystem-race-who-will-emerge-as-the-ultimate-value-carrier-a24077bff810)