paying in btc for brc-20 tokens does involve financial utxo movements, sure, but the token balances and transfers are still enforced off-chain by indexers parsing inscriptions—bitcoin only validates the op_return data and psbt complexity, not the "ownership" logic.

on wrapping via protocols like those tying brc-20 mints to valid btc scripts (e.g., locking addresses), bitcoin enforces the underlying sats lock, making it more tied to the chain, but the network's token consensus remains decentralized only if indexers agree, with easy forking risks if cheated—less centralized than pure social layers, yet not as baked-in as native utxos.

coindesk brc-20 guide