• Bitcoin's BRC-20 token protocol has added the BRC2.0 upgrade, which supports EVM compatibility.
• The upgrade aims to allow developers to deploy smart contracts directly on the Bitcoin network.
• BRC2.0 could spur the development of a DeFi ecosystem on the Bitcoin network.

The BRC-20 token protocol has integrated Ethereum Virtual Machine (EVM) compatibility via the BRC2.0 upgrade on Monday, allowing developers to deploy smart contracts on the Bitcoin (BTC) network.

BRC2.0 introduces smart contracts compatibility on Bitcoin network

The Bitcoin-native protocol BRC-20 has introduced BRC2.0 to the Bitcoin network, an upgrade that adds EVM compatibility, according to a post on Monday by Ordinals developer Best in Slot.

The BRC2.0 programmable module equips BRC-20 indexers with smart contract execution capabilities, enabling developers to launch smart contracts on the Bitcoin network.

It also extends programmability to Bitcoin-native tokens, making them compatible with other EVM-compatible chains without requiring bridges or other intermediaries.

The BRC2.0 upgrade was made official on Monday, with the EVM-compatibility integrated as of Bitcoin block height 912690, according to data from Block Explorer.

"The aim is to give users the Ethereum experience of composability and programmability, but secured by Bitcoin," said Domo, pseudonymous creator of BRC20, in a press release.

The BRC-20 protocol is a Bitcoin token standard that enables the creation and transfer of tokens on the Bitcoin network. Built on the Ordinals protocol, which assigns unique identifiers to individual satoshis, it allows data to be inscribed and tracked across transactions without relying on smart contracts.

The introduction of new smart contract functionality could spur the development of a decentralized finance (DeFi) ecosystem on the Bitcoin network.

"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 added.

BRC20 currently hosts 365,443 Bitcoin-native tokens.