A new upgrade introduces the programmability to tokens based on Bitcoin, opening the doors of Defi and NFTS.
BRC-20 tokens on the Bitcoin network can now perform smart Ethereum style contracts with new upgrade, opening the door for applications and challenges directly on the network.
The update, known as BRC-2.0, was activated at Bitcoin Block Height 912 690, marking another step in the efforts of the Bitcoin community to raise the status of the cryptocurrency from a value reserve to a platform capable of taking charge of the DAPPs and the protocols DEFI.
“BRC-20 2.0 reports a new chapter for Bitcoin, by moving it from a passive value reserve to a programmable financial layer,” said Leo fan, co-founder of Cysic, in a comment for the DESIGHT. “The real test will be whether developers can provide significant applications that justify additional complexity in a network where scalability and culture remain difficult.”
BRC-2.0 adds an intelligent Ethereum style contract to the BRC-20 indexer, allowing blockchain developers to rely directly on Bitcoin without relying on transverse bridges or wrapped tokens. This means that Bitcoin native tokens become programmable and capable of working gently with other EVM compatible channels.
‘Digital Golden Fuel’
Dmitry Gusakov, head of technology at the Ethereum Lido ignition protocol, told The Deviant that for Ethereum, EVM has become “one of the main engines of success”.
“If we have a programmability comparable or equal to the EVM on Bitcoin, we will finally reach the stadium when Bitcoin is more than a simple digital gold. With EVM, Bitcoin will become a digital golden fuel, opening doors to DEFI, Stablecoins and many other goodies that we have now on Ethereum,” said Gusakov.
With BRC-2.0, the BRC-20 token standard becomes more flexible than runes, another Bitcoin token protocol. Although runes keep things simple and effective using the Bitcoin and Op_return UTXO model for data, it still cannot perform smart contracts.
By allowing developers to build everything, from DEFI and NFT platforms to synthetic assets, BRC-2.0 could fuel a new economic layer that many supporters DEFI said that the Bitcoin network was missing.
