Bitcoin integrates smart contracts with new BRC2.0 protocol upgrade today.
A significant development in the world of cryptocurrency arrived with the announcement that the BRC20 token standard on Bitcoin now enables smart contract functionality similar to Ethereum. The new BRC2.0 upgrade, introduced at Bitcoin block 912690, brings advanced programmability features to Bitcoin’s blockchain for the first time.
Users familiar with token creation on Bitcoin know BRC20 for its role in supporting fungible tokens through the innovative Ordinals protocol. This technology makes it possible to inscribe information on individual satoshis, which are the smallest units of bitcoin. By storing instructions on these units, developers have explored various creative uses, but until now, their capabilities were limited.
With BRC2.0, developers have implemented a version of the Ethereum Virtual Machine, often referred to as EVM, into the BRC20 framework. EVM is known as the programmable foundation behind Ethereum, allowing programmers to construct and deploy a wide range of decentralized applications and smart contracts without relying on central authorities.
The new protocol was spearheaded by Ordinals developer Best in Slot and Domo, the original architect behind BRC20. Integrating EVM logic into Bitcoin’s environment brings the network closer to becoming fully programmable, a property sometimes described as Turing complete, which means it can perform any computation given enough resources.
EVM’s addition represents far more than a simple technical upgrade. Before this development, meta-protocols like Ordinals, Runes, and BRC20 utilized indexers that functioned like calculators. These simple systems could follow instructions and process data but were unable to execute complex logic. With the integration of EVM, BRC20 gains the ability to support elaborate workflows and programmable assets in a manner familiar to Ethereum developers.
For years, many within the Bitcoin community have looked to Ethereum’s flexibility and rich ecosystem of smart contract applications as a blueprint. The BRC2.0 release represents an effort to combine strength and security from Bitcoin with the robust programmability found in Ethereum’s virtual machine.
Bringing these elements together holds meaningful potential for both users and developers. On one hand, Bitcoin remains the most secure and decentralized network in existence, qualities that have made it the gold standard for digital value. On the other hand, EVM is considered a benchmark for smart contract environments, trusted by leading decentralized finance and application providers worldwide.
Developers and token creators now have a unique opportunity to leverage both. Those looking to Start Cloud Mining or develop decentralized solutions on the Bitcoin blockchain can incorporate smart contract features that were previously impossible on this network. This shift could attract new projects, foster innovation, and potentially create a thriving ecosystem around programmable Bitcoin-based assets.
Another benefit is the greater composability and flexibility available to builders. The ability to combine different applications and protocols, long a hallmark of the Ethereum ecosystem, can now extend to Bitcoin-based tokens and programs. Users could soon see services that merge Bitcoin security with dynamic automated features, bringing forth entirely new possibilities.
This technological convergence has been accelerated by a wave of interest in digital asset inscription and decentralized applications. Since 2023, protocols like Ordinals have demonstrated how innovative data recording strategies could unlock new use cases for Bitcoin, bringing fresh attention to its capabilities beyond simply storing value.
The upgrade also opens the door for broader cross-chain collaboration. By emulating the EVM, BRC20 tokens and applications can more easily interact with existing Ethereum-based infrastructure, facilitating easier movement of assets and interoperability between networks. Such synergy could encourage greater adoption and bolster Bitcoin’s relevance as the digital asset landscape evolves.
For users already involved in the Bitcoin ecosystem, the addition of EVM support means there may be new opportunities to participate in types of applications that traditionally have been the domain of Ethereum. From decentralized finance tools to unique automated services, the realm of possibilities has grown substantially almost overnight.
Conclusion
The recent integration of smart contract functionality on the Bitcoin blockchain signals a major turning point for the network’s future growth and application potential. By adopting EVM capabilities, BRC2.0 delivers on the promise of combining unmatched security with sophisticated programmability.
As innovation accelerates and developers gain access to powerful tools on both networks, Bitcoin’s role is set to expand far beyond its now-traditional image as digital gold. The introduction of features that enable smart contracts and flexible applications marks a new era, one in which Bitcoin could become a foundation for the next wave of decentralized innovations.
Ewan’s fascination with cryptocurrency started through his curiosity about innovative technologies reshaping the financial world. Over the past four years, he has specialized in cloud mining and crypto asset management, diving deep into mining contracts, profitability analysis, and emerging trends. Ewan is dedicated to helping readers understand the technical and economic aspects of crypto mining, making complex information accessible and actionable.
