📌 The BRC2.0 protocol introduces native modular smart contracts to the Bitcoin mainnet, promising to spark a wave of BTCfi applications and propel Bitcoin into a truly programmable era.
Key Points
Research from major platforms indicates that BRC2.0 appears to be a significant upgrade that transforms Bitcoin from "digital gold" into a programmable financial platform, introducing smart contract functionality compatible with the Ethereum Virtual Machine (EVM).
It may expand Bitcoin's application scenarios, including DeFi, NFTs, and SocialFi, but has also sparked controversy regarding network congestion and rising fees.
The current ecosystem includes projects like BiS SWAP and Trio DEX, with positive market responses, but community opinions are divided, with some expressing concerns about its impact on Bitcoin's core uses.
As on-chain innovations driven by Ordinals and Runes continue to heat up, the simple yet historically significant inscription token protocol BRC20 is also undergoing a critical upgrade. In the summer of 2025, the brand new BRC2.0 protocol will go live on the mainnet, transitioning Bitcoin assets from "issuable" to "programmable," paving the way for the deployment of native smart contracts on the BTC mainnet. BRC2.0 is becoming a new battleground for Bitcoin ecosystem developers and DeFi projects, following Ordinals and Runes.
1. What is BRC2.0?
BRC2.0 is an upgraded version of the BRC-20 standard, designed to transform Bitcoin from a mere value storage tool into a platform that supports complex applications by introducing EVM-compatible smart contract functionality. It was launched on the Bitcoin Signet testnet on March 31, 2025.
✅ Fully operates on the Bitcoin L1 layer, without relying on any Layer2 or cross-chain bridges.
✅ Compatible with Solidity smart contracts, supporting native migration of Ethereum DApps and reducing migration costs for developers.
✅ Modular extension asset protocol, allowing the addition of smart logic without migrating existing BRC20, addressing the performance bottleneck of Bitcoin's 10-minute block time.
Application Scenarios
DeFi: Supports automated market makers (AMM), decentralized exchanges (DEX), and lending protocols.
NFTs and inscriptions: Supports inscription staking and dynamic rewards through the Ordinal Lockers mechanism.
SocialFi: Explores on-chain social economies, such as content tipping and social token binding.
This means Bitcoin can not only issue tokens but also run complete DeFi applications, DEXs, NFT markets, and complex ecosystems like chain games.
2. Upgrade Path: Phased Introduction of Smart Contract Capabilities
The mainnet deployment of BRC2.0 is divided into two phases:
⏳ Phase One: Enable 6-byte Ticker (Block 909,969)
New support for 6-byte token symbols (e.g., BRCPRO, DAOSYS), automatically compatible with the BRC2.0 module system.
🧠 Phase Two: Automatic Upgrade Contract Support for All BRC20 (Block 914,888)
Core assets like $ORDI and $SATS will seamlessly integrate into the contract system, supporting features like Staking, governance, and airdrop control, without the need for manual migration or authorization.
✅ No need for Layer2 Sequencer
✅ No need for multi-signature or oracle
✅ All calls are based on standard BTC transaction structures, securely native
3. Comparative Analysis: From Inscriptions to Native Contracts
BRC2.0 can achieve:
Modular contract deployment and invocation
DEX / SWAP / Launchpad
Token Staking and governance mechanisms
Interoperability logic between NFTs and inscription assets
Proxy contract upgrade mechanisms and multi-module combinations
The technical innovation and ecological impact of BRC2.0 introduce a milestone upgrade in the Bitcoin ecosystem, aiming to transform Bitcoin from a simple value storage tool into a platform that supports complex smart contracts and multifunctional applications.
As an upgraded version of the BRC-20 standard, BRC2.0 introduces EVM-compatible smart contract functionality that runs directly on Bitcoin Layer 1, benefiting from Bitcoin's proof-of-work (PoW) security and decentralization features. A comprehensive analysis of BRC2.0's profound impact on the Bitcoin ecosystem is conducted from the perspectives of technical characteristics, ecological development, market impact, community sentiment, and potential risks. As of July 13, 2025, the BRC2.0 testnet has shown strong development momentum, but its mainnet launch and long-term viability still require further observation.
4. Core Mechanism: Modular Contract System on Bitcoin
BRC2.0 adopts an innovative Module architecture (Modular Contract System), with key components including:
UCode: General contract logic module
Account Layer: Multi-account state recording and authorization management
Protocol Router: Call permission routing center
This mechanism allows for a more transparent modular combination than EVM, fully compatible with Bitcoin's UTXO model, with the following advantages:
✅ Fully on-chain execution, no centralized nodes
✅ No additional Layer1 Token introduced
✅ Atomic operations, securely inheriting Bitcoin's POW network
BRC2.0 excels in programmability and interoperability compared to BRC-20 and Runes, and compared to Alkanes, its ecosystem integration and developer tools are more complete, but maturity still requires time for validation. In terms of security comparison, BRC2.0 inherits the complete security of the Bitcoin PoW network, superior to Layer 2 solutions and sidechain solutions that rely on additional security assumptions. Scalability analysis shows that BRC2.0 achieves efficient state management through modular design, but is still limited by the underlying throughput of the Bitcoin network.
5. Key Ecological Projects and Developer Tools
The BRC2.0 protocol has attracted multiple development teams and tool platforms to actively participate in ecosystem construction:
🌀 BiS SWAP
A native AMM protocol based on BRC2.0
Deploys on-chain trading pools, supporting slippage control and limit order functions
Promotes the early construction of the BTC native liquidity market
💹 BiS DEX
Uses on-chain order books and matching mechanisms, supporting strategic trading
Aimed at professional traders, providing a richer operational space
Complements the model with BiS SWAP
🧩 Trio DEX
Provides contract templates, one-click deployment, and Launchpad tools
Supports contract call data analysis and test environment access
Offers developers visual on-chain operations
🧪 CoinCooker
A no-code asset issuance platform, supporting BRC20 / BRC2.0
Supports icon uploads, parameter settings, and airdrop configurations
Lowers the threshold for asset issuance, suitable for non-technical users
🎮 Hippodrome
A gaming Web3 game on Bitcoin
Tests miner honesty using contract mechanisms
Features governance voting and on-chain behavior analysis mechanisms
💬 One2ThreeLabs
Builds SocialFi applications based on wallet behavior and token binding
Supports content tipping and identity binding mechanisms
Similar design philosophy to Friend.tech, currently in the testing phase
🧱 100 Layer
BTC encapsulation solution, providing Module-Asset mapping capabilities
Used for cross-protocol calls and unified standard output
Can be used for DeFi cross-protocol fund flow management
6. Mainnet Deployment and On-Chain Activity
The BRC2.0 test phase data shows active performance, indicating real market demand and development potential:
📈 Daily transaction volume during the test phase exceeded 120,000
👨💻 Over 500 contracts deployed, with 200+ developers participating
Mainstream assets like $ORDI and $SATS will automatically integrate into the BRC2.0 module system in September
🔗 Wallets like Unisat, Xverse, and Leather have completed integration, with more wallets in the process of connecting
From 2023 to 2025, discussions on #BRC20 and #BRC2.0 on the X platform have significantly increased, with over 8,000 posts, more than 5,000 shares, and over 100,000 likes. Discussion topics include technical analysis, market predictions, and community debates, reflecting the importance of BRC2.0 in the crypto community.
7. Developer Experience: Native, Secure, Low Barrier
✅ No need for bridging, no Layer2, middleware, or oracle
✅ All operations are based on Bitcoin Witness Data and standard transaction structures
✅ Supports Hardhat, Ethers.js, and Metamask compatible plugin development testing
Bitcoin developers finally have a truly L1 native, EVM-compatible smart contract platform.
8. Conclusion: The Programmable Era of Bitcoin Has Begun
BRC2.0 is not just an update to the token protocol, but a leap from token experimentation to full-stack application deployment capabilities.
It empowers Bitcoin with the following abilities:
✅ Supports the complete DApp lifecycle
✅ Integrates DeFi, NFT, DAO, and BTCfi application ecosystems
✅ Inherits the security, sovereignty, and transparency of the BTC network
DeFi Potential: If BRC2.0 can support more complex applications, it is expected to become the DeFi engine within the Bitcoin ecosystem, unlocking hundreds of billions of dollars in on-chain value, with a projected total market cap of over $10 billion by the end of 2025.
NFTs and Art: Combined with Ordinals, BRC2.0 could become the primary vehicle for NFTs and artworks on Bitcoin, attracting more creators and collectors.
Market Position: If BRC2.0 can overcome current technical and market challenges, it is expected to become an indispensable part of the Bitcoin ecosystem, with market predictions suggesting its market cap could exceed $10 billion by 2026 (FameEX report).
📌 Ordinals are a turning point in Bitcoin culture, Runes are a new attempt at asset issuance, and BRC2.0 is the gateway for BTC to a truly programmable future.
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