BRC2.0 Upgrade Brings EVM and Smart Contracts Directly to Bitcoin

TLDR

• BRC2.0 upgrade embeds Ethereum Virtual Machine into Bitcoin’s BRC-20 indexer.

• The upgrade enables smart contracts without bridges or wrapped tokens.

• Over $3 billion in BRC-20 assets have been traded since its 2023 launch.

• BRC2.0 competes with Runes by enabling programmable DeFi applications.

Bitcoin’s BRC-20 token protocol has completed a key upgrade that brings Ethereum-like smart contract functionality directly to Bitcoin. The update, called BRC2.0, was activated at block height 912,690 and introduces the Ethereum Virtual Machine (EVM) into BRC-20’s core indexer system.

The upgrade enables developers to build decentralized applications (dApps) and deploy smart contracts on Bitcoin without using bridges or external platforms. The changes mark a shift in how Bitcoin-native tokens can function, expanding beyond basic assets and into programmable tools that can support financial applications.

Smart Contracts Without Leaving Bitcoin

BRC2.0 was developed by infrastructure company Best In Slot, in collaboration with BRC-20’s pseudonymous creator Domo and the Layer 1 Foundation. The team embedded EVM capabilities directly into the protocol’s indexer, which tracks metadata for BRC-20 assets.

“Bitcoin meta-protocols like Ordinals, Runes, and BRC20 run on indexers, which function like simple calculators,” said Eril Binari Ezerel, CEO of Best In Slot.

The integration allows BRC-20 tokens to interact with EVM-compatible tools, enabling composable use cases similar to Ethereum-based assets. Developers can now build dApps that operate on Bitcoin’s secure base layer while still using Ethereum’s smart contract standards.

DeFi and dApps Now Possible on Bitcoin

Since its launch in 2023, BRC-20 has recorded over $3 billion in asset volume, mostly from meme coins and speculative assets. However, usage has been limited due to the lack of programmability on Bitcoin.

The new EVM support opens the door to decentralized finance (DeFi), lending, trading, and modular applications built directly on Bitcoin. According to Ezerel, “Adoption of Bitcoin native assets has been stifled because there are no dApps on Bitcoin; it’s just memes.”

The BRC2.0 upgrade positions BRC-20 to compete with other Bitcoin token standards such as Runes, which do not support programmability. “BRC-20 2.0 will be capable of supporting a DeFi ecosystem,” said Asher Corson, CIO of Unbroken Chain, a fund in the Ordinals space.

Bridging Bitcoin Security With Ethereum Tools

The update does not require bridges or wrapped tokens, which can introduce security concerns. Instead, it offers native smart contract support within Bitcoin’s ecosystem while remaining compatible with Ethereum-based development environments.

“The holy grail is combining the two gold standards: Bitcoin as the most decentralized and secure network, and the EVM as the most proven virtual machine,” said Domo, the creator of BRC-20. “The aim is to give users the Ethereum experience of composability and programmability, but secured by Bitcoin.”

Other programmable Bitcoin protocols, such as the WASM-based Alkanes standard, are also growing, showing broader developer interest in expanding Bitcoin’s utility. BRC2.0’s integration of EVM marks a new phase in Bitcoin development, potentially shifting focus from speculation toward functional applications.

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