BRC2.0 Debut: What is BRC2.0?

I am Ray.bit, a man with Bitcoin passion and technical insight, X (Twitter): https://x.com/bitlaser_btc

On April 9, 2025, I was honored to be invited by Best in Slot @bestinslotxyz to participate in the BRC 2.0 exchange meeting. I gained a lot and was filled with emotion. The Bitcoin ecosystem has never lacked excellent developers. This time, the upgraded BRC20 will continue to lead the Bitcoin ecosystem to reach its peak again.

Audio link of the exchange meeting: https://x.com/bestinslotxyz/status/1909256986455122099

At the exchange meeting, the leaders discussed the latest developments in the Bitcoin ecosystem, especially the upgrade of the BRC20 protocol – BRC 2.0, and its far-reaching impact on on-chain activities, interoperability, and ecosystem development. The following is a summary and key points of this discussion.

BRC20 upgrade: a breakthrough in modularity and programmability

As a token standard in the Bitcoin ecosystem, BRC20 has attracted widespread attention due to its simplicity and decentralization.

–Modular upgrade: BRC 2.0 injects more functionality into the protocol by introducing programmable modules without changing the base protocol. This means that existing BRC20 tokens (such as ORDI, RATS, etc.) can be seamlessly transitioned without migration, and users do not need to do anything extra.

–Programmability: The new version introduces the execution environment of EVM (Ethereum Virtual Machine), allowing developers to build complex on-chain applications such as decentralized exchanges (DEX), lending protocols and even stablecoins. This programmability brings unprecedented flexibility to the Bitcoin mainnet. The Best in Slot team may contact the Ethereum development team and ask them to port the application to BRC 2.0. At present, at least 20 teams have expressed their willingness to develop applications for BRC 2.0, including Bitcoin developers and Ethereum developers. The teams that are in communication and have entered the development stage are Ordinal Spot, Liquidum and 100 Layer.

–Deposit and withdrawal functions: BRC 2.0 introduces a modular deposit and withdrawal mechanism, allowing users to switch freely between the base protocol and programmable modules to support more complex financial scenarios.

BRC 2.0 is not intended to replace the existing protocol, but to inject new possibilities into it, maintaining the simplicity of the “Minimum Viable Protocol” (MVP) while meeting the community’s needs for complex functions.

BRC 2.0 FAQs

1. What will happen to old BRC20 tokens like ORDI and RATS after the 2.0 upgrade? Do users need to take any action?

BRC 2.0 is a backward compatible upgrade, all existing tokens are automatically adapted, and users do not need to migrate or perform additional operations. The protocol upgrade adds programmability to the tokens without affecting the original functions.

2. Will BRC 2.0 increase transaction speed? Does it support AMM or other DeFi features?

BRC 2.0 itself does not directly improve speed, but it can achieve fast transactions through sequencer technology and support AMM and DeFi functions similar to EVM, which needs to be optimized for Bitcoin block time. The market will determine the implementation method of the possibility of sequencer decentralization.

3. What are the deposit and withdrawal functions mentioned in BRC 2.0? What do they do?

The deposit and withdrawal functions are at the core of the modular design, allowing users to switch between base protocols and programmable modules to support complex financial scenarios.

4. How do I deploy a contract on the BRC 2.0 testnet? When can I access the relevant tools?

Best in Slot will release a testnet browser and contract interaction interface next week to facilitate developer deployment. The testnet is already online, but currently lacks visualization tools. New tools will be more suitable for application layer developers.

5. Can BRC 2.0 modules be 디파이ned by other developers? How to ensure that the modules are widely accepted?

Any developer can propose a new module, but the support of the indexer is required to reach a community consensus, reflecting the decentralized nature. The design of programmable modules reduces the dependence on additional modules while supporting innovation.

6. In the BRC20 ecosystem, what are the differences in the issuance of 4-byte, 5-byte, 6-byte or 12-byte codes? How will the namespace be expanded in the future?

4 bytes represent fair casting, 5 bytes represent self-issuance, 6 bytes and 12 bytes involve more complex ecosystems, and the distinction increases transparency. Namespace expansion requires community discussion, and teams such as Unisat are exploring solutions to avoid the problem of preemptive registration.

7. How does the sequencer achieve decentralization in BRC 2.0? How to deal with potential manipulation caused by RBF (replacement fee)?

Sequencers are used to batch transactions to increase speed, and their degree of decentralization depends on the developers choice (such as a validator system similar to Solana or a specific application sequencer). Bitcoins block time limits the feasibility of naked DeFi transactions, and sequencers reduce the risk of RBF manipulation through batch settlement.

8. How is the Ordinal Locker implemented? How does it work with BRC 2.0?

It uses Bitcoins native Time Lock mechanism to allow users to lock ordinal assets (such as NFT) to participate in staking, airdrops, or voting without trusting a third party. BRC 2.0 senses the state of the locker through specific codes, achieves interoperability with the ordinal protocol, and makes new applications (such as locking NFT mining tokens) possible.

Opportunities and Challenges of Bitcoin Ecosystem

During the exchange, the guests not only focused on technical details, but also discussed broader issues facing the Bitcoin ecosystem:

–On-chain activities and decentralization: Currently, 99% of Bitcoin transactions occur on centralized exchanges, which runs counter to the decentralized spirit of Bitcoin. By supporting on-chain DeFi applications (such as DEX, stablecoins, etc.), BRC 2.0 is expected to bring value creation back to the Bitcoin mainnet and reduce dependence on centralized platforms.

–Block time limit: Bitcoins 10-minute block time poses challenges for complex applications. Panelists discussed the potential of sequencers to enable faster user experience by batching transactions while maintaining decentralized security. Sequencers can be centralized or decentralized, depending on the developers choice, and the market will ultimately determine its acceptance.

–Interoperability and Ecosystem Integration: The interoperability between BRC 2.0 and Ordinals was one of the highlights of the discussion. For example, the Ordinal Locker launched by BestinSlot uses the Bitcoin native time lock mechanism to allow users to lock assets to participate in staking, airdrops or voting. This mechanism opens up new ways to combine NFTs with tokens, such as lock-based mining games or joint curve tokens.

–Community consensus and module development: The module upgrade of BRC 2.0 is open to everyone. Any developer can propose a new module, but its acceptance depends on the support of the Indexer, which reflects the social consensus mechanism of the Bitcoin ecosystem.

Future prospects of Bitcoin ecosystem

The guests were optimistic about the future of the Bitcoin ecosystem, but also pointed out problems that need to be solved:

–Miner fees and economic incentives: As on-chain activity increases, miners will receive more transaction fees, which will enhance the security of the Bitcoin network. The complex applications of 2.0 are expected to further incentivize miners to participate.

–Competition and innovation: Currently, value creation in the Web3 field is mostly concentrated on chains such as Ethereum and Solana, while the Bitcoin ecosystem needs more innovation to attract developers and funds. BRC 2.0 is regarded as an open sandbox, and BestinSlot promises to launch at least five products on this basis, covering tools and consumer applications.

–Community participation: The exchange meeting emphasized the importance of the community. Whether it is developers, miners or ordinary users, they all need to work together to promote the development of the Bitcoin ecosystem. The participation of partners such as OKX @wallet @OKXWallet_CN, Unisat @unisat_wallet @lorenzonical also added momentum to the promotion of BRC 2.0.

요약하다

The exchange demonstrated the potential of BRC 2.0 upgrade and the broad prospects of the Bitcoin ecosystem. From modular design to on-chain DeFi, to interoperability with the ordinal protocol, BRC 2.0 has injected new vitality into Bitcoin. Despite challenges such as block time limits and community consensus, the guests are confident about future development and emphasize that through collaboration and innovation, the Bitcoin ecosystem will usher in a new growth cycle.

This conversation is not only a discussion on technology, but also a tribute to the spirit of Bitcoin – decentralization, open innovation, and community-driven.

This article is sourced from the internet: BRC2.0 Debut: What is BRC2.0?

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