BRC2.0 Upgrade Brings Smart Contracts and DeFi to Bitcoin’s Base Layer in 2025
- What Does the BRC2.0 Upgrade Mean for Bitcoin?
- How Will Smart Contracts Work on Bitcoin?
- How Does Bitcoin’s Programmability Compare to Other Chains?
- What’s the Current State of the NFT Market?
- Frequently Asked Questions
The BRC2.0 upgrade, developed by Best In Slot and BRC20 creator Domo, integrates ethereum Virtual Machine (EVM) functionality into Bitcoin’s BRC-20 indexer, enabling Ethereum-style smart contracts and DeFi on Bitcoin. This Turing-complete upgrade could reignite interest in Bitcoin-native assets, with BRC-20 tokens already trading over $3 billion since 2023. Meanwhile, Ethereum continues to dominate NFT sales, accounting for 64.78% of the $71.55 billion total market volume.
What Does the BRC2.0 Upgrade Mean for Bitcoin?
The BRC2.0 upgrade is a game-changer for Bitcoin, merging Ethereum’s programmability with Bitcoin’s security. Developed by Best In Slot, pseudonymous BRC20 creator Domo, and the LAYER 1 Foundation, this upgrade embeds EVM functionality directly into Bitcoin’s BRC-20 indexer. In my experience, this is the first time bitcoin has natively supported smart contracts without relying on bridges or wrapped assets. Eril Binari Ezerel, CEO of Best In Slot, put it best: “We’ve upgraded Bitcoin’s calculator-style indexer with EVM, making BRC20 Turing-complete.”
How Will Smart Contracts Work on Bitcoin?
Developers can now write Ethereum-style smart contracts directly on Bitcoin while using familiar Ethereum tools. Domo calls this “the holy grail” – combining Bitcoin’s security with Ethereum’s composability. The upgrade could spark a new bull run for Bitcoin assets as DeFi functionality attracts more developers. Interestingly, BRC-20 tokens have already seen $3 billion in trading volume since 2023, despite being primarily used for memecoins until now. As Ezerel noted, “Bitcoin asset innovation was suppressed because there were no dApps – just memes.”
How Does Bitcoin’s Programmability Compare to Other Chains?
Bitcoin’s programmable layers are growing rapidly. BRC2.0 joins standards like Alkanes (WASM-based) in expanding Bitcoin’s functionality. In Q3 2025, Bitcoin accounted for over a third of all metaprotocol transactions. While still behind Ethereum in NFT volume ($5.69 billion vs Ethereum’s $46.35 billion), the gap may narrow as BRC2.0 enables more complex applications. Solana, currently second in NFT sales, has processed $6.43 billion in legitimate trades after removing wash trading.
What’s the Current State of the NFT Market?
Despite cooling from its peak, the NFT market has generated $71.55 billion since 2017. Ethereum dominates with 64.78% share, though $34.59 billion of its $80.95 billion total volume was wash trading. The last 30 days saw $2.1 billion in NFT sales, up 22% – suggesting renewed interest. As a longtime observer, I’ve noticed these cycles often precede broader market movements.
Frequently Asked Questions
What is the BRC2.0 upgrade?
The BRC2.0 upgrade integrates Ethereum VIRTUAL Machine functionality into Bitcoin’s BRC-20 indexer, enabling smart contracts and DeFi applications on Bitcoin’s base layer.
Who developed BRC2.0?
It was developed by Best In Slot, pseudonymous BRC20 creator Domo, and the LAYER 1 Foundation.
How much volume have BRC-20 tokens processed?
BRC-20 tokens have traded over $3 billion since their 2023 launch, with 5,636 BTC in on-chain volume in the past six months.
Which blockchain leads in NFT sales?
Ethereum dominates with $46.35 billion in legitimate NFT sales (64.78% market share), followed by solana ($6.43 billion) and Bitcoin ($5.69 billion).
