Fractal Bitcoin: Comprehensive Research Report

Summary

Fractal Bitcoin was launched on September 9, 2024, as an innovative Bitcoin scaling solution. It employs a unique hybrid mining model that combines merged mining and free mining. Fractal serves as a leading network for Bitcoin, providing developers with a valuable testing environment. The project attracted a large number of active users from the very beginning through partnerships with major wallets, avoiding the common "cold start" problem. Fractal maintains a community-driven development strategy, focusing on organic growth, and has successfully integrated key participants in the Bitcoin ecosystem.

1. Introduction

Fractal Bitcoin is the only Bitcoin scaling solution that recursively expands infinite layers using the Bitcoin core code itself. It is built on the world's most secure and widely held blockchain, aiming to address the long-standing scalability challenges of Bitcoin.

Fractal's mainnet officially launched on September 9, 2024, achieving significant success. Within just 24 hours, Fractal's joint mining accounted for over 40% of Bitcoin's total hash rate, while free mining accounted for 2% of Bitcoin's hash rate. Several large 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, maintains full compatibility with the Bitcoin mainnet, ensuring seamless integration with existing infrastructure. This approach achieves functional enhancement without compromising the core security model of Bitcoin.

2.2 Technical Specifications

• Block time: 30 seconds
• Hybrid mining mechanism: two permissionless mining blocks, one joint mining block
• Scalability: Theoretically supports infinite layers of improvement.
• Smart Contract Functionality: Implement OP_CAT Opcode
• Parallel Execution: Allows different applications to run independent instances
• Compatibility: 100% compatible 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 supported wallets to access different layers. Currently, 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

Fractal adopts a native Bitcoin approach, distinguishing itself from EVM-compatible Layer 2 solutions. Compared to Bitcoin Cash ( BCH ), Fractal has not created an independent chain, but instead embraces Bitcoin as the mainnet and seeks local scalability. In comparison 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 relies on approximately 1 million weekly active users of the UniSat wallet, which provides a large user base. This enables Fractal to bypass the barriers to early adoption and offer users an improved trading experience. Fractal plans to use the number of transactions as a core metric, rather than the total locked value ( TVL ).

4. Ecosystem Construction

4.1 Decentralization Concept

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

4.2 Launch users and developers

Fractal has implemented a user reward program, collaborated with OKX Wallet, and developed a developer incentive program.

4.3 Funding programs and project evaluation

Fractal employs a retrospective funding approach, rewarding based on the actual impact of projects. Evaluation criteria include contributions to the ecosystem, technological innovation, and long-term impact potential.

4.4 Outstanding Funding Projects

Including projects such as sCrypt, F2Pool, Nubit, DeTrading, UniWorlds, and FractalEcosystem.io.

4.5 Future Outlook

Fractal plans to expand its funding program, enhance community participation, and support a wide range of future applications, including advanced DeFi protocols, enhanced NFT functionalities, and more.

5. Token Economics and Economic Models

5.1 Token Details

• Name: FB (Fractal Bitcoin)
• Max Supply: 210 million
• Total Supply: 105,153,225.00000000
• Circulating Supply: 1,213,225.00061300
• Main use: Transaction fees ( within the Fractal ecosystem )

5.2 Token Allocation

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

5.3 Release and Lock-up Period

Different types of tokens have varying lock-up and release schedules to ensure long-term commitment.

5.4 Transparency and OP_CAT Governance Voting Mechanism

Fractal has announced the official addresses for each token allocation category and plans to adopt a governance voting mechanism based on OP_CAT.

6. Team and Partners

6.1 Core Contributors

Including the UniSat team and the Block Space Force team, they have extensive experience in the Bitcoin ecosystem and blockchain project development.

6.2 Developer Platform Partnerships

Fractal has received support from the Scrypt team, which is using OP_CAT to build a smart contract meta-protocol on Bitcoin.

7. Challenges and Risks

The main challenges include:

• Programmability: The use of Bitcoin scripts may hinder developer adoption
• Technical Risk: There are potential risks in modifying core parameters of Bitcoin and implementing new features.
• Adoption Risks: Convincing users and developers to shift from established solutions to Fractal may be challenging.

8. Conclusion

Fractal Bitcoin represents an innovative approach to Bitcoin scalability, with advantages such as native Bitcoin integration, technological innovation, and a strong built-in user base. Despite facing challenges, Fractal shows immense potential and could reshape the utility and adoption landscape of Bitcoin. Its success could profoundly impact the future of Bitcoin and the blockchain ecosystem. Potential investors and users should carefully weigh the project's potential against its risks and closely monitor its development.