Fractal Bitcoin: Comprehensive Research Report

Summary

Fractal Bitcoin was launched on September 9, 2024, and is an innovative Bitcoin scaling solution. Although it attracted a large amount of hash power in a short period, it remains relatively unknown in the global crypto community. This research aims to reveal this rapidly rising innovative project within the Bitcoin ecosystem.

Key Points

1. Innovative hybrid mining model: combining merged mining and permissionless mining, providing a new perspective for PoW.

2. Bitcoin's Test Network: Provides developers with a real testing environment, serving as a testing ground for potential Bitcoin upgrades and innovations.

3. Strong initial user base: Attracting the most active Bitcoin users from the beginning through partnerships with OKX and UniSat.

4. Community-driven strategy: Maintain a pragmatic community orientation, avoiding excessive hype and institutional influence.

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

1. Introduction

Fractal Bitcoin is the only Bitcoin scaling solution that recursively expands infinite levels using Bitcoin core code. It is built on the Bitcoin blockchain and aims to increase the scalability and functionality of Bitcoin.

The Fractal mainnet officially launched on September 9, 2024. Within 24 hours, its joint mining accounted for over 40% of Bitcoin's total hash rate, while free mining accounted for 2%. Large mining pools such as F2Pool, Antpool, and Spiderpool have joined the Fractal mining ecosystem.

2. Core Concepts and Technologies

2.1 Native Bitcoin Scaling

Fractal, as the native extension of Bitcoin, utilizes the existing codebase and modifies block production parameters to remain fully compatible with the Bitcoin mainnet.

2.2 Technical Specifications

• Block time: 30 seconds
• Mixed mining mechanism: 2/3 permissionless mining, 1/3 joint mining
• Scalability: Theoretically supports infinite layer expansion
• Smart contract function: achieved through OP_CAT
• Parallel execution: allows different applications to run independent instances.
• Compatibility: 100% compliant with Bitcoin standards

2.3 Unique User Experience

The wallet address on Fractal is exactly the same as the mainnet address; users only need to switch networks in the wallet to access different layers. Major wallets such as OKX Wallet and UniSat Wallet fully support Fractal Bitcoin.

3. The Position of Fractal in the Bitcoin Ecosystem

Comparison of 3.1 with Other Bitcoin Solutions

Compared to EVM-compatible Layer 2, Bitcoin Cash, and the Lightning Network, Fractal adopts a native Bitcoin approach, providing more comprehensive functionality support.

3.2 Market Strategy and Built-in User Base

Fractal relies on the UniSat wallet with about 1 million active users per week, avoiding the "cold start" problem. Its strategy focuses on trading volume rather than TVL, showcasing real usage and adoption.

4. Ecosystem Construction

4.1 Decentralization Concept

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

4.2 Start Users and Developers

Attract participation through user reward programs, OKX wallet collaborations, and developer incentives.

4.3 Funding Programs and Project Evaluation

Adopt a retrospective model to reward based on the actual impact of the project. Evaluation criteria include ecosystem contribution, technological innovation, etc.

4.4 Prominent Funding Projects

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

4.5 Future Outlook

Plan to expand funding programs, increase community engagement, and support advanced DeFi protocols, NFT functionalities, and other applications.

5. Token Economics and Economic Models

5.1 Token Details

• Name: FB ( Fractal Bitcoin )
• Maximum Supply: 210 million coins
• Total Supply: 105,153,225
• Circulating Supply: 1,213,225
• Main Use: Transaction Fees

5.2 Token Allocation

• Proof of Work Mining:50%
• Ecosystem Reserve Fund: 15%
• Community Rewards: 10%
• Pre-sale: 5%
• Advisory Pool: 5%
• Core Contributors: 15%

5.3 Release and Lock-up Period

Different types of tokens have different lock-up periods and release plans.

5.4 Transparency and OP_CAT Governance Voting Mechanism

Publish the official address to achieve transparency, and 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, with rich experience in blockchain projects.

6.2 Developer Platform Partnership

Get support from the Scrypt team to jointly develop smart contract standards.

7. Challenges and Risks

The main challenges include:

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

8. Conclusion

Fractal Bitcoin showcases an innovative approach to expanding Bitcoin's functionalities, with advantages such as native integration, technological innovation, and a strong user base. Despite facing challenges, its potential is tremendous and could reshape the utility and adoption landscape of Bitcoin. Investors and users should weigh its potential against the risks and closely monitor its developments.