Fractal Bitcoin: Comprehensive Research Report

Summary

Fractal Bitcoin was launched on September 9, 2024, as an innovative Bitcoin scaling solution. This study aims to reveal this project, which has rapidly gained attention in the Bitcoin ecosystem.

Key Points

1. Innovative mining method: Fractal introduces a hybrid mining model that combines joint mining and free mining.

2. Bitcoin's precursor network: Fractal provides developers with a real testing environment, and the activation of OP_CAT marks the beginning of numerous experiments.

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

4. Community-Driven Strategy: Fractal maintains a pragmatic community-oriented approach, avoiding excessive hype and institutional influence.

5. Ecosystem Integration: Fractal integrates 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 the Bitcoin core code itself. It is built on top of the Bitcoin blockchain and aims to address the scalability and functionality enhancement challenges that Bitcoin has faced for a long time.

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

2. Core Concepts and Technologies

2.1 Native Bitcoin Expansion

Fractal, as a native extension of Bitcoin, utilizes the existing Bitcoin codebase and modifies block production parameters to maintain full compatibility with the Bitcoin mainnet.

2.2 Technical Specifications

• Block time: 30 seconds
• Mixed mining mechanism: two free mining and one joint mining in every three blocks
• Scalability: Theoretically supports infinite layers of improvement, with each layer providing a 20 times capacity increase.
• Smart Contract Functionality: Implement OP_CAT opcode, supporting complex smart contracts
• Parallel Execution: Allows different applications to run independently optimized instances
• Compatibility: 100% compatible with Bitcoin standard

2.3 Unique User Experience

The wallet address on Fractal is exactly the same as the mainnet address, and users only need to switch networks in the wallet to access different layers.

3. The Position of Fractal in the Bitcoin Ecosystem

Comparison of 3.1 with Other Bitcoin Solutions

• Compared to EVM-compatible Layer 2, Fractal adopts a native Bitcoin approach.
• Compared to Bitcoin Cash, Fractal embraces Bitcoin as the mainnet and seeks local expansion.
• Compared to the Lightning Network, Fractal offers comprehensive smart contract support without the need for channel management.

3.2 Market Strategy and Built-in User Base

Fractal has gained a built-in user base of approximately 1 million weekly active users through its collaboration with UniSat. This allows it to avoid the "cold start" problem while focusing on trading volume rather than TVL as a key metric.

4. Ecosystem Development

4.1 Decentralization Concept

Fractal is committed to diversified cross-chain bridge solutions, open development environments, community-driven governance, and distributed infrastructure.

4.2 Launch Users and Developers

• User Rewards Program: Distributing 1 million FB tokens to over 100,000 eligible addresses.
• OKX Wallet Collaboration
• Developer Incentive Program

4.3 Funding Programs and Project Evaluation

Adopt a retrospective funding approach to reward based on the actual impact of the project. Evaluation criteria include contributions to the ecosystem, technological innovation, and more.

4.4 Outstanding Funding Projects

including sCrypt, F2Pool, Nubit, DeTrading, UniWorlds, etc.

4.5 Future Outlook

Plan to expand funding programs, increase community engagement, and support a wide range of future applications and scalable infrastructure development.

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%)
• Presale (5%)
• Consultant Pool (5%)
• Core Contributors (15%)

5.3 Release and Lock-up Period

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

5.4 Transparency and OP_CAT Governance Voting Mechanism

Fractal has announced the official token distribution address and plans to use a governance voting mechanism based on OP_CAT.

6. Team and Partners

6.1 Core Contributors

Including the co-founders of the UniSat team and Block Space Force.

6.2 Developer Platform Partnership

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

7. Challenges and Risks

• Programmability: The use of Bitcoin scripts may hinder developer adoption.
• Technical Risks: Modifying the core parameters of Bitcoin carries the risk of introducing vulnerabilities.
• Adoption risk: persuading users and developers to shift from existing solutions to Fractal is challenging.

8. Conclusion

Fractal Bitcoin represents a groundbreaking approach to expanding Bitcoin's functionality, with advantages such as native integration, technological innovation, and a built-in user base. Despite facing challenges, its innovative methods, strong support, and early adoption show great potential. Fractal may reshape the utility and adoption landscape of Bitcoin, and its success will profoundly impact the future of Bitcoin and the blockchain ecosystem.