The Bitcoin blockchain has formally adopted a new token standard, BRC2.0, which enables developers to create EVM-style smart contracts using the existing Ordinals inscription mechanism. This standard allows for the issuance of fungible tokens and the deployment of programmable contract logic directly on Bitcoin, without requiring layer-2 solutions.
BRC2.0 builds upon the BRC20 token protocol introduced earlier this year, enhancing functionality to support contract calls, state management, and modular token architecture. Key features include on-chain token allowances, event emissions, and support for multi-token contracts. The protocol leverages the resilience and security of Bitcoin’s proof-of-work consensus while offering capabilities comparable to Ethereum’s ERC-20 and ERC-721 standards.
Initial implementations of BRC2.0 have already been deployed by several development teams, with live contracts facilitating decentralized finance (DeFi) applications, on-chain gaming assets, and cross-chain bridges. Pilot projects include a decentralized exchange for Bitcoin-based tokens and a synthetic asset platform that mirrors the price of major cryptocurrencies on Bitcoin.
Proponents argue that BRC2.0 could significantly increase Bitcoin’s utility, attracting new developer activity and potentially boosting transaction volume. Critics caution about increased blockchain bloat and higher transaction fees, suggesting that careful network governance and fee market tuning will be necessary to maintain efficiency.
Overall, the launch of BRC2.0 marks a major milestone in Bitcoin’s evolution, offering a more expressive programming environment within the world’s largest blockchain.
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