Fractal Bitcoin: Comprehensive Research Report

Summary

Fractal Bitcoin was launched on September 9, 2024, and is an innovative Bitcoin scaling solution. It utilizes the Bitcoin core code to achieve recursive scaling, providing additional functionality and scalability for Bitcoin. This report comprehensively analyzes Fractal's technical features, market positioning, ecosystem development strategies, as well as the challenges and opportunities it faces.

Key Points

1. Innovative Mining Model: Fractal combines merged mining and free mining, providing a new perspective for PoW.

2. Bitcoin's Pioneer Network: Fractal is compatible with the Bitcoin mainnet, providing a testing environment for developers.

3. Strong initial user base: By collaborating with OKX and UniSat, Fractal attracted active Bitcoin users from the very beginning.

4. Community-Oriented Strategy: Fractal adopts a pragmatic community-driven approach to avoid excessive hype.

5. Ecosystem Integration: Successfully integrated key participants of the Bitcoin ecosystem such as BRC-20, Ordinals, and Runes.

1. Introduction

Fractal Bitcoin is an extension solution based on the Bitcoin core code, designed to infinitely and recursively expand Bitcoin's functionality. It officially launched on September 9, 2024, and quickly gained significant mining support. Within 24 hours of launching, Fractal's joint mining accounted for over 40% of Bitcoin's total hash rate, with free mining making up 2%. Major mining pools such as F2Pool, Antpool, and Spiderpool have joined the Fractal ecosystem.

2. Core Concepts and Technologies

2.1 Native Bitcoin Expansion

Fractal, as a native extension of Bitcoin, maintains full compatibility with the Bitcoin mainnet while enhancing functionality.

2.2 Technical Specifications

• Block Time: 30 seconds
• Hybrid Mining Mechanism: 2/3 Free Mining, 1/3 Pool Mining
• Scalability: theoretically supports unlimited layers of expansion
• Smart Contract: Achieve Turing completeness through OP_CAT
• Parallel Execution: Different applications can run independently optimized instances.
• Compatibility: 100% compatible with Bitcoin standards such as BRC-20 and Ordinals.

2.3 User Experience

The wallet address on Fractal is the same as that of the Bitcoin mainnet, and users can easily switch networks in UniSat or OKX wallets.

3. The Position of Fractal in the Bitcoin Ecosystem

Comparison with Other Solutions 3.1

Compared to EVM-compatible Layer 2, Bitcoin Cash, and the Lightning Network, Fractal offers native Bitcoin scaling and full smart contract support.

3.2 Market Strategy and User Base

Fractal leverages UniSat's approximately 1 million weekly active users to avoid the "cold start" problem. It takes the number of transactions as the core metric, rather than the total locked value (TVL).

4. Ecosystem Construction

4.1 Decentralized Concept

Fractal encourages diversified cross-chain bridges, open development environments, community-driven governance, and distributed infrastructure.

4.2 User and Developer Incentives

Including user reward programs, OKX wallet collaboration, and developer funding programs.

4.3 Funding Program

Adopt a retrospective model to reward based on the actual impact of the project.

4.4 Key Funding Projects

Including sCrypt, F2Pool, Nubit, DeTrading, UniWorlds, and FractalEcosystem.io, etc.

4.5 Future Outlook

Plan to expand the funding program, strengthen community participation, and support a wide range of application scenarios and cross-chain interoperability.

5. Token Economics and Economic Models

5.1 Token Details

• Name: FB ( Fractal Bitcoin )
• Maximum supply: 210 million coins
• Main use: transaction fees

5.2 Token Allocation

• 50% for PoW mining
• 15% ecosystem reserve fund
• 10% Community Reward
• 5% Presale
• 5% Advisor Pool
• 15% Core Contributors

5.3 Release and Lock-up Period

Different token parts have different locking periods and release plans.

5.4 Governance Mechanism

Plan to adopt a governance voting mechanism based on OP_CAT.

6. Team and Partners

6.1 Core Contributors

Including members of the UniSat and Block Space Force teams, who have extensive experience in the cryptocurrency industry.

6.2 Developer Platform Cooperation

Collaborate with the Scrypt team to develop smart contract standards.

7. Challenges and Risks

• Programmability: The use of Bitcoin scripts may limit the number of developers.
• Technical Risk: Modifying core parameters of Bitcoin poses potential risks.
• Adoption barriers: Convincing users to switch from existing solutions can be challenging.

8. Conclusion

Fractal Bitcoin demonstrates an innovative approach to expanding Bitcoin's functionality, boasting advantages such as native integration, technological innovation, and a strong user base. Despite facing some challenges, its potential is significant. The development of Fractal could have a profound impact on the Bitcoin ecosystem, making it worth closely monitoring its technological advancements, ecosystem growth, and market adoption.