Fractal Bitcoin: Comprehensive Research Report

Summary

Fractal Bitcoin will be launched on September 9, 2024, and is an innovative Bitcoin scaling solution. It uses native Bitcoin code for recursive scaling, aimed at enhancing the functionality and scalability of Bitcoin. This research report provides an in-depth analysis of Fractal's technical characteristics, ecosystem development strategies, market positioning, and the challenges and opportunities it faces.

Main Findings

1. Innovative Technical Architecture: Fractal adopts a hybrid mining model, combining merged mining and free mining, providing a new perspective for the proof-of-work mechanism.

2. Bitcoin Compatibility: As a native extension of Bitcoin, Fractal is fully compatible with the Bitcoin mainnet, providing developers with a practical testing environment.

3. Strong early user base: Through partnerships with UniSat and OKX wallets, Fractal attracted an active community of Bitcoin users from the very beginning.

4. Community-driven development: Fractal adopts a pragmatic community-driven strategy, focusing on organic growth and participation.

5. Ecosystem Integration: Successfully integrated key participants in the Bitcoin ecosystem, including the BRC-20, Ordinals, and Runes communities.

Core Concepts and Technologies

Fractal, as the native extension of Bitcoin, maintains full compatibility with the Bitcoin mainnet. Its main technical features include:

• 30 seconds block time
• Hybrid Mining Mechanism
• OP_CAT opcode supporting complex smart contracts
• Infinite levels of scalability
• The same wallet address system as the Bitcoin mainnet.

Ecosystem Construction

Fractal adopts a decentralized and community-driven ecosystem development strategy:

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

Support various projects through funding programs, including core infrastructure, DeFi protocols, NFT functionalities, etc.

Token Economics

• Token Name: FB (Fractal Bitcoin)
• Maximum supply: 210 million coins
• Allocation: 50% for PoW mining, 15% ecosystem reserve, 10% community rewards, 5% presale, 5% advisor pool, 15% core contributors

Adopt a transparent token allocation mechanism and a governance voting system based on OP_CAT.

Challenges and Risks

• Programmability: The use of Bitcoin scripts may limit developer participation.
• Technical risk: Modifying the core parameters of Bitcoin poses potential risks.
• Adoption barriers: Convincing users to migrate from existing solutions can be challenging.

Conclusion

Fractal Bitcoin represents an innovative approach to the expansion of Bitcoin, with a strong technical foundation and strategic partnerships. Despite facing challenges, its unique positioning within the Bitcoin ecosystem and early adoption signals demonstrate significant potential. The development of Fractal could have a profound impact on the future of Bitcoin, warranting close attention.