BRC-20 Upgrade: Bitcoin Becomes a Smart Contract Platform
ByAinvest
Tuesday, Sep 2, 2025 5:50 am ET1min read
BTC--
The BRC2.0 upgrade, executed by Ordinals developer Best in Slot alongside BRC20's pseudonymous creator Domo, integrates EVM into the core logic of the BRC-20 indexer. This makes BRC20 Turing complete, allowing for the execution of complex smart contracts [1].
The integration of EVM into Bitcoin's BRC-20 protocol marks a significant milestone. It extends Bitcoin beyond its traditional use case as a store of value and settlement network, enabling developers to deploy Solidity-based applications on the Bitcoin network [2]. This upgrade eliminates the need for wrapped assets or third-party bridges, allowing smart contracts to operate natively within the Bitcoin ecosystem.
The BRC2.0 upgrade positions Bitcoin as a direct competitor to Ethereum and other smart contract blockchains. It provides Bitcoin with a crucial layer of programmability, which has been a defining advantage for Ethereum. This upgrade could potentially redirect liquidity towards Bitcoin and expand its DeFi potential [2].
However, the success of the BRC2.0 initiative depends on supporting infrastructure. Comprehensive developer documentation, robust wallet integrations, and thorough security audits will be essential to encourage adoption and build trust [2]. The potential risks of embedding complex contract logic into Bitcoin's ecosystem also raise questions about scalability and security, which the developer community will need to address.
The long-term opportunities are substantial. If widely adopted, BRC2.0 could transform Bitcoin from a primarily financial asset into the backbone of a new wave of decentralized applications. By combining Bitcoin's brand and liquidity with Ethereum-like functionality, the upgrade positions BRC20 as a critical bridge between the two ecosystems [2].
The next several months will be pivotal, as developers experiment with the new tools and early projects test the viability of Bitcoin-native dApps. The introduction of new smart contract functionality could spur the development of a decentralized finance (DeFi) ecosystem on the Bitcoin network, potentially driving another bull run for Bitcoin assets [4].
References:
[1] https://www.coindesk.com/tech/2025/09/01/bitcoin-token-protocol-brc20-enables-evm-style-smart-contracts-with-brc2-0
[2] https://financefeeds.com/brc-20-integrates-evm-compatibility-with-brc2-0-upgrade/
[3] https://www.fxstreet.com/cryptocurrencies/news/bitcoin-native-protocol-brc-20-integrates-evm-compatibility-following-upgrade-202509020354
[4] https://www.mitrade.com/insights/news/live-news/article-3-1086072-20250901
ETH--
Bitcoin has upgraded its BRC-20 token standard to BRC2.0, adding Ethereum Virtual Machine (EVM) compatibility. This enables the creation of smart contracts on Bitcoin, making it a platform for decentralized applications. The upgrade puts Bitcoin in direct competition with Ethereum, potentially redirecting liquidity and expanding Bitcoin-native DeFi potential. Developers now have full programmability, allowing for more complex applications on the Bitcoin network.
Bitcoin has taken a significant step towards becoming a platform for decentralized applications with the upgrade of its BRC-20 token standard to BRC2.0. This upgrade introduces Ethereum Virtual Machine (EVM) compatibility, enabling the creation of smart contracts directly on the Bitcoin network.The BRC2.0 upgrade, executed by Ordinals developer Best in Slot alongside BRC20's pseudonymous creator Domo, integrates EVM into the core logic of the BRC-20 indexer. This makes BRC20 Turing complete, allowing for the execution of complex smart contracts [1].
The integration of EVM into Bitcoin's BRC-20 protocol marks a significant milestone. It extends Bitcoin beyond its traditional use case as a store of value and settlement network, enabling developers to deploy Solidity-based applications on the Bitcoin network [2]. This upgrade eliminates the need for wrapped assets or third-party bridges, allowing smart contracts to operate natively within the Bitcoin ecosystem.
The BRC2.0 upgrade positions Bitcoin as a direct competitor to Ethereum and other smart contract blockchains. It provides Bitcoin with a crucial layer of programmability, which has been a defining advantage for Ethereum. This upgrade could potentially redirect liquidity towards Bitcoin and expand its DeFi potential [2].
However, the success of the BRC2.0 initiative depends on supporting infrastructure. Comprehensive developer documentation, robust wallet integrations, and thorough security audits will be essential to encourage adoption and build trust [2]. The potential risks of embedding complex contract logic into Bitcoin's ecosystem also raise questions about scalability and security, which the developer community will need to address.
The long-term opportunities are substantial. If widely adopted, BRC2.0 could transform Bitcoin from a primarily financial asset into the backbone of a new wave of decentralized applications. By combining Bitcoin's brand and liquidity with Ethereum-like functionality, the upgrade positions BRC20 as a critical bridge between the two ecosystems [2].
The next several months will be pivotal, as developers experiment with the new tools and early projects test the viability of Bitcoin-native dApps. The introduction of new smart contract functionality could spur the development of a decentralized finance (DeFi) ecosystem on the Bitcoin network, potentially driving another bull run for Bitcoin assets [4].
References:
[1] https://www.coindesk.com/tech/2025/09/01/bitcoin-token-protocol-brc20-enables-evm-style-smart-contracts-with-brc2-0
[2] https://financefeeds.com/brc-20-integrates-evm-compatibility-with-brc2-0-upgrade/
[3] https://www.fxstreet.com/cryptocurrencies/news/bitcoin-native-protocol-brc-20-integrates-evm-compatibility-following-upgrade-202509020354
[4] https://www.mitrade.com/insights/news/live-news/article-3-1086072-20250901
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