Best in Slot: BRC2.0 Frequently Asked Questions

BRC2.0 Frequently Asked Questions English Translation:

BRC2.0 Frequently Asked Questions

Hello everyone, Bitcoin family! Thank you for your attention to BRC2.0, a long-awaited step for BRC20, which will soon be launched on the mainnet, implementing smart contracts on the Bitcoin layer.

As Bitcoin's development momentum increases, the community has raised some thought-provoking questions, such as its possibilities, how it works, and future development directions. Here are some of the most common questions and their answers:

BRC2.0 Basics

What is BRC2.0?

BRC2.0 is an upgrade to the original BRC20 token standard, directly introducing EVM-compatible smart contracts on Bitcoin's layer 1, with native settlement and security.

It brings programmability to Bitcoin, allowing thousands of battle-tested EVM contracts and dApps to be deployed on the main chain.

How does BRC2.0 differ from BRC20?

The original BRC20 standard allowed basic token minting and transfer but lacked programmability. BRC2.0 introduces smart contract functionality, supporting advanced financial applications such as DeFi, stablecoins, DeFAI, DAOs, and RWAs.

Does BRC2.0 require multi-signature, sorters, or off-chain approvals?

No, it does not. Users can deploy inscriptions or interact with EVM-compatible contracts through standard Bitcoin transactions. There is no need for multi-signature wallets, sorters, or off-chain approvals.

Is BRC2.0 secure?

BRC2.0 is built on the security and decentralization of Bitcoin's proof-of-work. It follows trusted and extensively tested smart contract standards, ensuring execution on-chain and avoiding external dependencies.

How do I use BRC2.0 to deploy smart contracts?

The deployment process involves writing contract code into standard Bitcoin transactions. Currently, you can do this using the Best in Slot public UI on Signet:

Deploy Contract

Interact with Contract

BRC2.0 Explorer

Which wallets support BRC2.0?

Wallets such as @Xverseapp, @LeatherBTC, @wallet, @unisat_wallet, @phantom, @oylwallet, and others that can sign Bitcoin transactions are already able to interact with BRC2.0 to some extent. However, full smart contract functionality may require technical upgrades, especially for wallets that do not use our API. We will share dedicated compatibility updates and integration guides later.

Token Upgrades, Ordinals, and Future Development

What will happen to 4-byte codes? Can existing tokens (like ORDI or SATS) be upgraded to BRC2.0?

All existing BRC20 tokens, including 4-byte code tokens like ORDI and SATS, will become programmable after Phase 2, at block height 914,888 (around September 17). This target may be adjusted based on integration progress. They can adopt the BRC2.0 module through a smooth and convenient process. BiS and BRC20 ecosystem partners are actively coordinating the upgrade work across the ecosystem.

Who will choose to include ORDI, SATS, etc., in the upgrade module? How does it work?

Token holders can easily join BRC2.0 by simply depositing. This is a permissionless modular system that does not require any changes to the tokens themselves.

What is the timeline?

The BRC2.0 mainnet launch is divided into two phases:

Phase 1: 6-byte Programmable Codes

• Block Height: 909,969 (approximately August 14)

• Introduces new 6-character codes and is immediately compatible with BRC2.0 smart contracts.

Phase 2: Fully Compatible BRC200

• Target Block Height: 914,888 (approximately September 17)

• All existing BRC20 assets, including tokens like ORDI and SATS, will be programmable through BRC2.0. (Specific dates may be adjusted based on other BRC20 indexer integrations.)

Why create 6-byte tickers?

The 6-byte codes immediately introduce programmability, facilitating a smooth transition to BRC2.0 functionality without disrupting the existing BRC20 ecosystem. This initiative is the best way to ensure a smooth upgrade process.

Will there be a launch platform?

Yes. We are working to provide the best launch platform experience for Bitcoin native assets. BRC2.0, with its native smart contracts and ordinal-aware features, provides everything needed for trustless token issuance, gating mechanisms, and more. Other teams in the ecosystem are also actively exploring similar products.

How does Ordinals-aware work?

BRC2.0 supports ordinal awareness, meaning smart contracts can recognize inscriptions and collectibles and interact with them. Ordinal Lockers implement this functionality, utilizing Bitcoin's native timelock and signature verification to securely lock inscriptions for a set period.

Smart contracts can detect this locking state and use it to enable functions such as staking, token minting, and other features that require holding inscriptions. Everything operates based on Bitcoin's native mechanisms, without any off-chain components.

Can you issue tokens specifically for Ordinal collections?

Yes. BRC2.0 supports associating tokens with Ordinal collections, enabling direct token issuance linked to Ordinals. We are designing BRC2.0 products to create the best experience, making this process as simple as possible.

Is there a connection between BiS ARTIFACTS and BRC2.0?

Yes. BiS ARTIFACTS (the first lockable Ordinal collection) can connect to the BRC2.0 ordinal locker in the following ways. We plan to expand on this further and will share more details soon.

Are there other Ordinals projects planning to launch on BRC2.0 or use Ordinal Lockers?

Yes. Some holders from series like Goosinals and Bitcoin Puppets have already locked over 100 assets using Ordinal Lockers. Many other Ordinals projects are also building on BRC2.0 or preparing to launch staking/locking features.

What is the purpose of building a gasless application chain for BTCfi?

Bitcoin's 10-minute block time makes it challenging to support fast, complex dApps directly on layer 1. A gasless application chain provides a high-performance environment for BTCfi applications, eliminating delays and fee barriers while still anchoring to Bitcoin. It enables a smoother user experience and broader design space without compromising underlying security.

What types of applications will be the first to adopt BRC2.0?

BRC2.0 has attracted developers from the entire Bitcoin ecosystem. A variety of applications are emerging, from DeFi and SocialFi to gaming, including DEXs, AMMs, token launch platforms, collections, and more.

· The first gasless app-chain designed for high-performance BTCfi decentralized applications

· A launch platform for Bitcoin native assets

· BiS SWAP - BRC2.0 Swaps

· BiS DEX - A professional trading experience for BRC20

· Trio DEX - A BRC20 decentralized exchange developed by @trio_xyz and more tools

· CatSwap - A BRC2.0 Swap developed by @CatSwap_Fun

· SocialFi developed by @One2ThreeLabs

· CoinCooker - A no-code token creation suite for Bitcoin native assets

· Hippodrome - A Web3 game developed by @horsedev42 to test miner integrity

· 100Layer - BRC2.0's WBTC (Wrapped BTC) solution @100_Layer

· More BRC2.0 tools developed by @OrangeCryptoX

· @adderrels - BRC2.0 Ordinals collection

· @Earlybirdsbrc - BRC2.0 Ordinals collection

Testnet and Developer Questions

Why does BRC2.0 need withdrawal and deposit functions? What is the purpose of this design?

We have adopted this design for all BRC20 upgrades. These are referred to as "modules." Essentially, you can enter a module (in this case, BRC2.0), perform your operations, and then exit (withdraw) back to the BRC20 base.

This design is part of the modular upgrade path for BRC20. You can enter a module similar to BRC2.0 to perform operations and then withdraw to the base BRC20. It helps maintain clarity and security, especially within Bitcoin's 10-minute block time, where efficient state transitions are crucial.

Is there an effective way to handle contract data queries?

Yes. Most Ethereum-compatible developer tools can be used with BRC2.0, meaning existing methods for querying contract data (such as through The Graph, Ethers.js, or custom indexers) will apply.

If EVM executes smart contracts, and a user has ORDI and wants to perform smart contract operations, do they need to cross-chain, or can they operate directly?

No, you do not need to cross-chain. As a user, you will likely just need to click a few buttons, and everything will be abstracted.

Our project is currently being developed on Ethereum, Base, Polygon, or other EVM chains using Solidity. Will it be easier to port to BRC2.0 later? Does it support features like proxy contracts?

Yes, porting your Solidity project to BRC2.0 will be very straightforward, and it supports proxy contracts.

Is there a possibility for BRC20 to upgrade to OPRETURN storage for data? Is contract data stored in OPRETURN or in witnesses?

It will use witness data, as it is more efficient for relatively large data.

Regarding the BRC20 Balance Server required for BRC2.0, is it open-source or implemented in OPI?

It is already part of the OPI BRC20 indexer. Once BRC2.0 is enabled, the server will start automatically.

Is the BRC2.0 testnet live? Where can I try it out?
Yes, the BRC2.0 testnet is live on Bitcoin Signet. You can now explore, deploy, and interact with smart contracts using our public tools:

BRC2.0 Explorer

Smart Contract UI

Deploy Contract

Does Signet allow regular users to participate in testing?

Signet is primarily aimed at developers but also welcomes interested users to explore and try it out. However, please note that it is not an incentivized testnet.

Should the height for activating Signet BRC2.0 be set to a specific value, or is it random?

We currently set it to 230,000, but this is completely random. The first valid BRC2.0 inscription is at 241,423, so any value below this height should be valid. To speed up the initial indexing, we may adjust it to 240,000 in the future.