Fractal Bitcoin: An Innovative Expansion Solution for the Bitcoin Ecosystem

Abstract

Fractal Bitcoin will be launched on September 9, 2024, as an innovative expansion solution within the Bitcoin ecosystem. It utilizes the Bitcoin core code for recursive expansion, offering native Bitcoin scalability, faster transaction speeds, and enhanced smart contract capabilities. This report provides a comprehensive analysis of Fractal's core concepts, technical features, ecosystem development strategies, and its positioning within the Bitcoin ecosystem.

1. Introduction

Fractal Bitcoin is a unique Bitcoin scaling solution that utilizes the Bitcoin core code to achieve infinite levels of recursive scaling. Its mainnet officially launched on September 9, 2024, and quickly garnered significant miner support, with joint mining accounting for over 40% of Bitcoin's total hash rate and free mining at 2%. This rapid adoption indicates a high level of market recognition for Fractal technology.

2. Core Concepts and Technologies

2.1 Native Bitcoin Expansion

Fractal maintains full compatibility with the Bitcoin mainnet, achieving functional enhancements and seamless integration.

2.2 Technical Specifications

• Block time: 30 seconds, significantly faster than Bitcoin's 10-minute block time
• Mixed mining mechanism: two free mining in three blocks, one joint mining
• Scalability: Supports infinite levels of expansion, with each level providing a 20x capacity increase.
• Smart Contract: Implement OP_CAT opcode, support Turing complete contracts
• Parallel execution: allows applications to run independent 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 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 Solutions

Compared to EVM-compatible Layer 2, Bitcoin Cash, and the Lightning Network, Fractal offers a more native scaling solution while supporting comprehensive smart contract functionality.

3.2 Market Strategy and User Base

With the 1 million active users of the UniSat wallet, Fractal has a strong built-in user base, effectively avoiding the "cold start" problem.

4. Ecosystem Construction

4.1 Decentralization Concept

Fractal encourages diverse cross-chain bridge solutions, an open development environment, and community-driven governance.

4.2 Start Users and Developers

Fractal actively expands ecosystem participation through user reward programs, OKX wallet collaboration, and developer incentives.

4.3 Funding Program

Adopt a retroactive funding model to reward based on the actual impact of projects, supporting a diverse range of projects from infrastructure to application layer.

4.4 Outstanding Funding Projects

Including key projects such as sCrypt, F2Pool, Nubit, DeTrading, UniWorlds, etc.

5. Token Economics and Economic Models

5.1 Token Details

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

5.2 Token Distribution

• 50% for Proof of Work mining
• 15% ecosystem reserve fund
• 10% community reward
• 5% presale
• 5% Advisor Pool
• 15% Core Contributors

5.3 release and lock period

Set different lock-up periods and release mechanisms to ensure long-term commitment.

5.4 Governance Mechanism

The plan is to adopt a governance voting mechanism based on OP_CAT.

6. Team and Partners

Core contributors include the UniSat team and Block Space Force, with platform development supported by the Scrypt team.

7. Challenges and Risks

• Programmability: The use of Bitcoin scripts may limit developer participation.
• Technical risk: Modifying core parameters may introduce vulnerabilities.
• Adoption Risks: The challenge of persuading users to migrate from existing solutions.

8. Conclusion

Fractal Bitcoin represents an innovative approach to the functional expansion of Bitcoin, with advantages such as native integration, technological innovation, and a strong user base. Despite facing some challenges, its potential and early adoption are encouraging. Fractal is expected to reshape the utility and adoption landscape of Bitcoin, making its future development worth close attention.