BRC 2.0 has ushered in a major upgrade, giving it smart contract capabilities by integrating EVM, aiming to combine the security of Bitcoin with the mature ecosystem of Ethereum. This article explores its technical challenges, potential applications, and early developments. (Synopsis: Leading NFTs rise a hundred times a month, will the BRC 2.0 upgrade trigger a new round of BTC ecological boom? (Background addition: Dialogue with BRC-20 founder: Ethereum traitors retreat for 48 hours, rewriting the history of the Bitcoin ecosystem) On September 2, 2025, at the Bitcoin block height of 912,690, BRC20 completed a major upgrade called BRC2.0. The upgrade was driven by Ordinals development team Best in Slot and BRC20 anonymous creator Domo, and the core change was the introduction of the Ethereum Virtual Machine (EVM), giving BRC20 the ability to execute Turing-complete smart contracts. Since the launch of the Ordinals protocol in early 2023, the Bitcoin ecosystem has ushered in a wave of innovation. Through this protocol, users can issue NFTs or fungible tokens by inscribed information on the smallest Bitcoin unit "satoshis". This mechanism gave birth to the BRC20 token standard, which enables the Bitcoin network to host more types of asset issuance and trading activities. BRC20 was originally a standard for issuing fungible tokens on the Bitcoin chain based on the Ordinals protocol. This upgrade significantly expands its functionality by integrating the EVM. Eril Binari Ezerel, CEO of Best in Slot, said that bitcoin metaprotocols like BRC20 originally ran on indexers with functions similar to "simple calculators", and by embedding EVMs, indexers achieve Turing-completeness, thus supporting more complex logic and contract execution. With the upgrade, developers can now build DeFi protocols, NFT marketplaces, lending systems, and synthetic assets directly on top of the Bitcoin network underneath. This integration maintains compatibility with Ethereum tools while providing the security of the Bitcoin network. Domo pointed out in the statement that the goal of this upgrade is to combine the security and decentralization characteristics of the Bitcoin network with the mature ecosystem of EVM in smart contracts to provide users with a composable, programmable and secure on-chain experience guaranteed by Bitcoin. The BRC2.0 upgrade presents a clear technical difference: Runes is not programmable and will most likely never be programmable, limiting it to Meme Coin use cases, while BRC2.0 unlocks DeFi-level applications. This functional difference makes BRC2.0 occupy a unique position in the Bitcoin ecosystem, providing a technical foundation for more diverse application scenarios. Technical Challenges Although the BRC 2.0 upgrade brings significant functional improvements, it also faces some technical challenges and limitations. The upgrade implements an off-chain processing scheme in a programmable manner, with the EVM actuator integrated with the BRC20 indexer, and the final status update done by the BRC20 indexer on the Bitcoin chain. This design is considered by some to be less decentralized and carries the risk of a single point of failure. Transactions on BRC 2.0 are still subject to Bitcoin's underlying limitations. Market buy and sell orders require multiple signatures and block confirmations, and transaction speed is still limited to a 10-minute block time. Due to Bitcoin's 10-minute block time, ordinary AMM designs are vulnerable to MEV attacks and can lead to failed transactions, as well as failed transactions and wasted BTC as miner fees. Projects such as CatSwap are already planning to launch mainnet AMM products in the coming weeks, but the initial stages should be considered experimental. A more advanced "sequencer-based AMM" scheme is also in development and is expected to go live within 1 to 3 months to achieve higher transaction speeds and mitigate MEV risks. After the launch of BRC2.0, Best in Slot launched BiS DEX v1, calling it the first decentralized exchange to serve BRC2.0. Despite some server loads and minor vulnerabilities, the platform processed more than $200,000 in trading volume within 24 hours without the loss of user funds. Currently, BiS DEX supports market buy and limit sell orders, but there are still some usage restrictions, such as waiting for 1 block confirmation for the listing and listing of tokens, resulting in high time and cost. The team says it will roll out real-time orders in the next 4 to 8 weeks to speed up transactions and reduce fees. In addition, unmanaged quotes and more order types such as Buy Limit, Market Sell and Stop Orders will follow. In terms of ecological applications, in addition to BiS DEX, there are currently several projects under active construction: UniSat has supported BRC2.0 token deployment, providing 6-character token names, self-issuing options, 0–18 decimal places and other functions, and optimizing the cost and efficiency of inscription services. CatSwap is mentioned as an upcoming AMM protocol and is expected to be a liquidity provider in the BRC2.0 ecosystem. The Adderrels project participates in the construction of the ecosystem by issuing NFTs and the token ACORNS, and part of its tokens will be used to provide liquidity for CatSwap. Currently, its NFT floor price is tentatively quoted at 0.00675 BTC ( about $776 ). It is worth noting that ACORNS, as the number one token in the BiS DEX BRC 2.0 sector by trading volume, has fallen for four consecutive days since its launch. On the other hand, encapsulating Bitcoin (wrapped BTC) and stablecoins are seen as important infrastructure for the development of the BRC2.0 ecosystem. Encapsulating Bitcoin is a key component. Without it, AMM can only support token-to-token pools, not token-to-BTC pools. The team is communicating with multiple providers, including Lombard LBTC, Citrea cBTC, and SUBFROST frBTC, among others, and expects a usable packaged Bitcoin solution within 1 to 2 months. Related reports Taiwan's first company to invest in bitcoin treasury" listed company Zhitong Kechuang Wiselink stock price hit a record high Solana-based Bitcoin Layer 2 project Bitcoin Hyper pre-sale has begun Bitcoin "crazy secret" research report: enterprises purchase four times faster than mining output "With the introduction of the Ethereum Virtual Machine, can BRC 2.0 reproduce the former glory of Bitcoin inscriptions? This article was first published in BlockTempo's "Dynamic Trend - The Most Influential Blockchain News Media".
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With the introduction of the Ethereum Virtual Machine, can BRC 2.0 recreate the former glory of Bitcoin inscriptions?
BRC 2.0 has ushered in a major upgrade, giving it smart contract capabilities by integrating EVM, aiming to combine the security of Bitcoin with the mature ecosystem of Ethereum. This article explores its technical challenges, potential applications, and early developments. (Synopsis: Leading NFTs rise a hundred times a month, will the BRC 2.0 upgrade trigger a new round of BTC ecological boom? (Background addition: Dialogue with BRC-20 founder: Ethereum traitors retreat for 48 hours, rewriting the history of the Bitcoin ecosystem) On September 2, 2025, at the Bitcoin block height of 912,690, BRC20 completed a major upgrade called BRC2.0. The upgrade was driven by Ordinals development team Best in Slot and BRC20 anonymous creator Domo, and the core change was the introduction of the Ethereum Virtual Machine (EVM), giving BRC20 the ability to execute Turing-complete smart contracts. Since the launch of the Ordinals protocol in early 2023, the Bitcoin ecosystem has ushered in a wave of innovation. Through this protocol, users can issue NFTs or fungible tokens by inscribed information on the smallest Bitcoin unit "satoshis". This mechanism gave birth to the BRC20 token standard, which enables the Bitcoin network to host more types of asset issuance and trading activities. BRC20 was originally a standard for issuing fungible tokens on the Bitcoin chain based on the Ordinals protocol. This upgrade significantly expands its functionality by integrating the EVM. Eril Binari Ezerel, CEO of Best in Slot, said that bitcoin metaprotocols like BRC20 originally ran on indexers with functions similar to "simple calculators", and by embedding EVMs, indexers achieve Turing-completeness, thus supporting more complex logic and contract execution. With the upgrade, developers can now build DeFi protocols, NFT marketplaces, lending systems, and synthetic assets directly on top of the Bitcoin network underneath. This integration maintains compatibility with Ethereum tools while providing the security of the Bitcoin network. Domo pointed out in the statement that the goal of this upgrade is to combine the security and decentralization characteristics of the Bitcoin network with the mature ecosystem of EVM in smart contracts to provide users with a composable, programmable and secure on-chain experience guaranteed by Bitcoin. The BRC2.0 upgrade presents a clear technical difference: Runes is not programmable and will most likely never be programmable, limiting it to Meme Coin use cases, while BRC2.0 unlocks DeFi-level applications. This functional difference makes BRC2.0 occupy a unique position in the Bitcoin ecosystem, providing a technical foundation for more diverse application scenarios. Technical Challenges Although the BRC 2.0 upgrade brings significant functional improvements, it also faces some technical challenges and limitations. The upgrade implements an off-chain processing scheme in a programmable manner, with the EVM actuator integrated with the BRC20 indexer, and the final status update done by the BRC20 indexer on the Bitcoin chain. This design is considered by some to be less decentralized and carries the risk of a single point of failure. Transactions on BRC 2.0 are still subject to Bitcoin's underlying limitations. Market buy and sell orders require multiple signatures and block confirmations, and transaction speed is still limited to a 10-minute block time. Due to Bitcoin's 10-minute block time, ordinary AMM designs are vulnerable to MEV attacks and can lead to failed transactions, as well as failed transactions and wasted BTC as miner fees. Projects such as CatSwap are already planning to launch mainnet AMM products in the coming weeks, but the initial stages should be considered experimental. A more advanced "sequencer-based AMM" scheme is also in development and is expected to go live within 1 to 3 months to achieve higher transaction speeds and mitigate MEV risks. After the launch of BRC2.0, Best in Slot launched BiS DEX v1, calling it the first decentralized exchange to serve BRC2.0. Despite some server loads and minor vulnerabilities, the platform processed more than $200,000 in trading volume within 24 hours without the loss of user funds. Currently, BiS DEX supports market buy and limit sell orders, but there are still some usage restrictions, such as waiting for 1 block confirmation for the listing and listing of tokens, resulting in high time and cost. The team says it will roll out real-time orders in the next 4 to 8 weeks to speed up transactions and reduce fees. In addition, unmanaged quotes and more order types such as Buy Limit, Market Sell and Stop Orders will follow. In terms of ecological applications, in addition to BiS DEX, there are currently several projects under active construction: UniSat has supported BRC2.0 token deployment, providing 6-character token names, self-issuing options, 0–18 decimal places and other functions, and optimizing the cost and efficiency of inscription services. CatSwap is mentioned as an upcoming AMM protocol and is expected to be a liquidity provider in the BRC2.0 ecosystem. The Adderrels project participates in the construction of the ecosystem by issuing NFTs and the token ACORNS, and part of its tokens will be used to provide liquidity for CatSwap. Currently, its NFT floor price is tentatively quoted at 0.00675 BTC ( about $776 ). It is worth noting that ACORNS, as the number one token in the BiS DEX BRC 2.0 sector by trading volume, has fallen for four consecutive days since its launch. On the other hand, encapsulating Bitcoin (wrapped BTC) and stablecoins are seen as important infrastructure for the development of the BRC2.0 ecosystem. Encapsulating Bitcoin is a key component. Without it, AMM can only support token-to-token pools, not token-to-BTC pools. The team is communicating with multiple providers, including Lombard LBTC, Citrea cBTC, and SUBFROST frBTC, among others, and expects a usable packaged Bitcoin solution within 1 to 2 months. Related reports Taiwan's first company to invest in bitcoin treasury" listed company Zhitong Kechuang Wiselink stock price hit a record high Solana-based Bitcoin Layer 2 project Bitcoin Hyper pre-sale has begun Bitcoin "crazy secret" research report: enterprises purchase four times faster than mining output "With the introduction of the Ethereum Virtual Machine, can BRC 2.0 reproduce the former glory of Bitcoin inscriptions? This article was first published in BlockTempo's "Dynamic Trend - The Most Influential Blockchain News Media".