Fractal Bitcoin: Comprehensive Research Report

Summary

Fractal Bitcoin was launched on September 9, 2024, as an innovative project within the Bitcoin ecosystem. As a native scaling solution for Bitcoin, Fractal aims to enhance the scalability and functionality of Bitcoin while maintaining compatibility with the Bitcoin mainnet. This research report provides a comprehensive analysis of Fractal's core concepts, technical features, ecosystem development strategies, as well as potential challenges and opportunities.

1. Introduction

Fractal Bitcoin is a unique Bitcoin scaling solution that utilizes Bitcoin core code to achieve infinitely recursive scaling. The project officially launched on September 9, 2024, and quickly gained significant hash power support. Within 24 hours of its launch, Fractal's joint mining accounted for over 40% of Bitcoin's total hash power, while free mining accounted for 2%. Several 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, enhances functionality by modifying block production parameters while maintaining full compatibility with the Bitcoin mainnet.

2.2 Technical Specifications

• Block time: 30 seconds
• Hybrid mining mechanism: 2/3 permissionless mining, 1/3 joint mining
• Scalability: Supports infinite layers of improvement, each layer provides a 20x capacity increase
• Smart Contract: Achieve Turing-complete smart contracts through OP_CAT
• Parallel execution: allows different applications to run independently optimized instances.
• Compatibility: 100% compatible with Bitcoin standards such as BRC-20 and Ordinals.

2.3 Unique User Experience

The wallet address on Fractal is the same as the mainnet address, 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 Bitcoin Solutions

Compared to EVM-compatible Layer 2, Bitcoin Cash, and the Lightning Network, Fractal adopts a Bitcoin-native approach, providing comprehensive smart contract support and a simplified user experience.

3.2 Market Strategy and Built-in User Base

Fractal has gained a user base of about 1 million weekly active users through the support of the UniSat wallet, avoiding the "cold start" problem. Its strategy focuses on the number of transactions rather than the total locked value ( TVL ).

4. Ecosystem Construction

Fractal's ecosystem construction strategy emphasizes decentralization and community-driven growth, including:

• Diversified cross-chain bridge solutions
• Open development environment
• Community-driven governance
• Distributed Infrastructure

Support multiple key projects through funding programs, such as sCrypt, F2Pool, Nubit, etc.

5. Token Economics and Economic Models

5.1 Token Details

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

5.2 Token Allocation

• Proof of Work Mining: 50%
• Ecosystem Reserve Fund: 15%
• Community Reward: 10%
• Presale: 5%
• Advisor Pool: 5%
• Core Contributors: 15%

5.3 Release and Lock-up Period

Different categories of tokens have different release and locking mechanisms to ensure long-term commitment.

5.4 Transparency and OP_CAT Governance Voting Mechanism

Fractal has announced its official address to achieve complete transparency and plans to implement an innovative governance voting mechanism based on OP_CAT.

6. Team and Partners

Core contributors include the UniSat and Block Space Force teams, who have extensive experience in the blockchain industry. Fractal has also collaborated with the Scrypt team to develop smart contract standards.

7. Challenges and Risks

The main challenges include:

• Programmability: The use of Bitcoin scripts may hinder developer adoption.
• Technical risk: Modifying core parameters of Bitcoin may introduce vulnerabilities.
• Adoption risk: Convincing users to switch from existing solutions may be challenging.

8. Conclusion

Fractal Bitcoin showcases an innovative approach to expanding Bitcoin's functionality, featuring advantages such as native integration, technological innovation, and a strong initial user base. Despite facing some challenges, Fractal's unique approach and early adoption signals demonstrate tremendous potential, which could have a profound impact on the future of Bitcoin and the blockchain ecosystem.