Bitcoin Token Protocol BRC20 Enables EVM-Style Smart Contracts With 'BRC2.0'

Bitcoin token protocol BRC20 has taken a step toward enabling Ethereum-style smart contracts. The Bitcoin token protocol has integrated Ethereum Virtual Machine (EVM) into its core logic as of Bitcoin block 912,690, according to an announcement shared with CoinDesk on Monday. BRC20 is a token standard for issuing fungible tokens on the Bitcoin blockchain via the Ordinals protocol , which allows data to be inscribed on individual satoshis (the smallest denomination of BTC, equivalent to one hundred millionth of a bitcoin). EVM is the operating system on Ethereum that allows the execution of smart contracts, making tokens programmable and removing the need for centralized governance. The upgrade, dubbed BRC2.0, was executed by Ordinals developer Best in Slot alongside BRC20's pseudonymous creator Domo. "Bitcoin meta-protocols like Ordinals, Runes and BRC20 run on indexers, which function like simple calculators. We upgraded this 'calculator-style' indexer with EVM, making BRC20 Turing complete ,” Best in Slot CEO Eril Binari Ezerel said in the announcement. The advent of the Ordinals protocol at the start of 2023 provided much of the impetus for subsequent developments of greater utility on Bitcoin, such as allowing smart contract capabilities akin to those inherent to Ethereum and other networks. “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," Domo said. "The aim is to give users the Ethereum experience of composability and programmability, but secured by Bitcoin.”