Bitcoin's BRC-20 Indexer Update Introduces Characteristics Akin to Ethereum

In early 2023, the Bitcoin ecosystem saw a significant milestone with the launch of BRC-2.0. Since its inception, over $3 billion in asset value has been traded on this new platform.

BRC-2.0, a groundbreaking upgrade, aims to bring Ethereum's diverse application ecosystem onto Bitcoin. One of its key features is the integration of Ethereum Virtual Machine (EVM) functionality into its core indexer, a move that Domo, the creator of BRC-2.0, refers to as the "holy grail" of combining Bitcoin and the EVM.

This integration allows developers to build decentralised applications (dApps) directly secured by Bitcoin. As a result, developers can now deploy Ethereum-style smart contracts on Bitcoin without the need for bridges or wrapped assets, ensuring native composability.

Until now, Bitcoin-native assets have primarily been used for meme coins and speculative trading. However, BRC-2.0's increased programmability may lead to more real-world applications for these assets, potentially driving renewed interest and investment.

Asher Corson, CIO of Unbroken Chain, predicts that this programmability and the introduction of Decentralised Finance (DeFi) could spark renewed interest in Bitcoin native assets, potentially leading to another bull run for these assets.

In the last six months, BRC-20 has registered 5,636 BTC (US$633 million) in on-chain volume. The Alkanes standard, a WASM-based programmable Bitcoin layer, has recently surpassed one-third of all meta-protocol related transactions in Q3.

The BRC-2.0 upgrade was developed by Best In Slot, Domo, and the Layer 1 Foundation. The goal of combining Bitcoin's security and decentralization with the EVM's proven virtual machine is to give users the Ethereum experience of composability and programmability on Bitcoin.

BRC-2.0's new smart contract functionality expands the possibilities for Bitcoin-native assets. Corson compares BRC-2.0 to Runes, noting that BRC-2.0 introduces programmability while Runes do not, making BRC-2.0 capable of supporting a DeFi ecosystem.

The integration of EVM functionality into the BRC-20 indexer of Bitcoin was carried out by the BRC-20 protocol developers via the BRC2.0 upgrade, with Ordinals developer "Best in Slot" announcing the implementation.

BRC-2.0's new functionality may lead to more real-world applications for these assets due to increased programmability. BRC-2.0 embeds EVM functionality into its core indexer, opening up a world of possibilities for developers and users alike. This could potentially lead to BRC-2.0's new smart contract functionality expanding the possibilities for Bitcoin-native assets.

In conclusion, the launch of BRC-2.0 marks a significant step forward for the Bitcoin ecosystem. With its increased programmability and the integration of EVM functionality, BRC-2.0 could revolutionise the way we interact with Bitcoin-native assets, leading to more real-world applications and potentially driving another bull run for these assets.