Fractal Bitcoin: Comprehensive Analysis Report

Summary

Fractal Bitcoin was launched on September 9, 2024, representing an important innovation in the field of Bitcoin expansion. The project has attracted a large amount of computing power in a short period of time through a unique hybrid mining model and native Bitcoin expansion method, quickly establishing an active user base. This report provides a comprehensive analysis of Fractal's core concepts, technical features, ecosystem construction strategies, as well as potential challenges and opportunities.

Key Points

1. Innovative Hybrid Mining Model: Combining permissionless mining and merged mining, providing a new perspective for PoW network security.

2. Bitcoin Testnet: Highly compatible with the Bitcoin mainnet, providing developers with a real testing environment.

3. Strong initial user base: Successfully attracted the most active users in the Bitcoin ecosystem through cooperation with UniSat and OKX.

4. Community-driven development strategy: adopting a pragmatic community-oriented approach, avoiding excessive hype.

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

1. Introduction

Fractal Bitcoin is the first Bitcoin scaling solution that recursively extends the Bitcoin core code, built on the world's most secure and widely held blockchain. Its emergence represents a new development in the Bitcoin scaling discussion, providing a unique perspective on the long-standing challenges.

The Fractal mainnet officially launched on September 9, 2024, at 00:00 UTC, achieving significant success. Within 24 hours of launch, Fractal's joint mining accounted for over 40% of Bitcoin's total hash power, with free mining representing 2% of Bitcoin's hash power. Major mining pools such as F2Pool, Antpool, and Spiderpool have joined the Fractal ecosystem, demonstrating widespread interest in the project within the industry.

2. Core Concepts and Technologies

2.1 Native Bitcoin Expansion

Fractal, as a native extension of Bitcoin, maintains full compatibility with the Bitcoin mainnet, achieving functional enhancements without affecting the core security model of Bitcoin.

2.2 Technical Specifications

• Block time: 30 seconds, significantly improving transaction confirmation speed and network throughput.

• Hybrid mining mechanism: In every three blocks, two are permissionless mining, and one is joint mining with Bitcoin.

• Scalability: Supports infinite layers of improvement, with each layer providing a 20x capacity increase.

• Smart Contracts: Achieve Turing-complete smart contracts through OP_CAT.

• Parallel Execution: Allows different applications to run independently optimized instances.

• Compatibility: 100% compatible with Bitcoin standards such as BRC-20 and Ordinals.

2.3 Unique User Experience

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

3. The Position of Fractal in the Bitcoin Ecosystem

Comparison of 3.1 with Other Bitcoin Solutions

• EVM-compatible Layer 2: Fractal adopts a native Bitcoin approach, which may align more closely with the ideals of Bitcoin purists.

• Bitcoin Cash ( BCH ): Fractal embraces the Bitcoin mainnet, avoiding community splits.

• Lightning Network: Fractal provides comprehensive smart contract support without the need for channel management.

3.2 Market Strategy and Built-in User Base

• Leveraging the UniSat wallet with approximately 1 million weekly active users to bypass the "cold start" problem.

• Focus on trading volume rather than TVL, showcasing real adoption.

4. Ecosystem Construction

4.1 Decentralization Concept

• Encourage diverse cross-chain bridge solutions
• Open Development Environment
• Community-driven governance
• Distributed Infrastructure

4.2 Start User and Developer

• Distribute 1 million FB tokens to over 100,000 addresses
• Collaborate with OKX wallet to expand user base
• Developer Incentive Program

4.3 Funding Programs and Project Evaluation

• Adopt a post-funding retrospective model
• Evaluation criteria include ecosystem contribution, technological innovation, etc.
• Support for diverse project types

4.4 Outstanding Funding Projects

• sCrypt: Enhanced scripting capabilities
• F2Pool: provides mining support
• Nubit: Development of data availability layer
• DeTrading: Supports trustless cross-chain swaps
• UniWorlds: A toolkit for building virtual worlds
• FractalEcosystem.io: Community-driven project directory

4.5 Future Outlook

• Expansion Financing Program
• Deepen community engagement
• Support for a wide range of application scenarios
• Develop scalable infrastructure
• Enhance cross-chain interoperability

5. Token Economics and Economic Models

5.1 Token Details

• Name: FB( Fractal Bitcoin )
• Maximum supply: 210 million pieces
• Total Supply: 105,153,225.00000000
• Circulating Supply: 1,213,225.00061300
• Main use: transaction fees

5.2 Token Distribution

• Proof of Work Mining(50%)
• Ecosystem Reserve Fund ( 15% )
• Community Rewards (10%)
• Pre-sale (5% )
• Advisor Pool(5%)
• Core Contributor (15%)

5.3 Release and Lock-up Period

• Presale and core contributor tokens: 7 months lock-up, followed by 5 months of linear release
• Ecosystem reserve and community rewards: up to 10% released annually over 10 years.
• Advisor Tokens: Up to 20% released each year for 5 years

5.4 Transparency and OP_CAT Governance Voting Mechanism

• Publish the official address for complete transparency
• Plan to adopt an innovative governance voting mechanism based on OP_CAT

6. Team and Partners

6.1 Core Contributors

• UniSat: Leading Bitcoin wallet with over 900,000 weekly active users
• Block Space Force: Co-founders have successful experience with Coinbase, CoinMarketCap, and others.

6.2 Developer Platform Collaboration

• Collaborate with the Scrypt team to jointly develop smart contract standards

7. Challenges and Risks

• Programmability: Bitcoin scripts have a high entry barrier, which may hinder developer adoption.
• Technical Risk: There are potential risks in modifying the core parameters of Bitcoin.
• Adoption Barrier: Convincing users to migrate from existing solutions is challenging.

8. Conclusion

Fractal Bitcoin represents an innovative approach to the expansion of Bitcoin, with advantages such as native integration, technological innovation, and a strong user base. Despite challenges such as programmability and adoption barriers, its unique value proposition and early successes demonstrate significant potential. Fractal is expected to reshape the utility and adoption landscape of Bitcoin, and its development is worth close attention.