Fractal Bitcoin: Comprehensive Research Report

Summary

Fractal Bitcoin was launched on September 9, 2024, as an innovative Bitcoin scaling solution. It adopts a unique hybrid mining model that combines merged mining with permissionless mining. Fractal serves as a leading network for Bitcoin, providing developers with a valuable testing environment. Through partnerships with OKX and UniSat, Fractal has attracted active Bitcoin users from the very beginning. The project maintains a pragmatic community-driven strategy focused on organic growth. Fractal successfully 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 uses the Bitcoin Core code itself to recursively expand to infinite levels. It is built on the world's most secure and widely held blockchain, providing a new scaling perspective for the Bitcoin ecosystem.

The Fractal mainnet officially launched on September 9, 2024. In 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. Large mining pools such as F2Pool, Antpool, and Spiderpool have joined Fractal's mining ecosystem.

2. Core Concepts and Technologies

2.1 Native Bitcoin Scaling

Fractal, as the native extension of Bitcoin, maintains complete compatibility with the Bitcoin mainnet, ensuring seamless integration with existing infrastructure.

2.2 Technical Specifications

• Block time: 30 seconds
• Hybrid mining mechanism: two permissionless mining blocks and one joint mining block
• Scalability: theoretically supports infinite layers of improvement
• Smart contract function: Implement OP_CAT opcode
• Parallel Execution: Allows different applications to run their own 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 just need to switch networks in the UniSat or OKX wallet to access different layers.

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, Bitcoin Cash, and the Lightning Network.

3.2 Market Strategy and Built-in User Base

With the support of UniSat, Fractal is able to reach approximately 1 million weekly active users. Fractal takes the number of transactions as the 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.

4.2 Launching Users and Developers

• User Reward 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.

4.4 Outstanding Funding Projects

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

4.5 Future Outlook

Plan to expand funding programs, deepen community engagement, and support a wide range of future applications.

5. Token Economics and Economic Models

5.1 Token Details

• Name: FB( Fractal Bitcoin )
• Maximum Supply: 210 million coins
• Total Supply: 105,153,225.00000000
• 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%)
• Pre-sale (5%)
• Advisor Pool(5%)
• Core Contributor (15%)

5.3 Release and Lock-up Period

Set different lock and release schedules to ensure long-term commitment.

5.4 Transparency and OP_CAT Governance Voting Mechanism

Announce the official address and plan to adopt a governance voting mechanism based on OP_CAT.

6. Team and Partners

6.1 Core Contributors

Including the UniSat and Block Space Force teams.

6.2 Developer Platform Partnership

Get support from the Scrypt team.

7. Challenges and Risks

• Programmability: The use of Bitcoin scripts may hinder ecosystem growth.
• Technical Risk: Modifying the core parameters of Bitcoin may introduce vulnerabilities
• Adoption risk: may face resistance from Bitcoin extremists

8. Conclusion

Fractal Bitcoin represents an innovative approach to extending the functionality of Bitcoin. It has advantages such as native Bitcoin integration, technological innovation, and a built-in user base. Despite facing challenges in programmability, technology, and adoption, Fractal shows great potential and may reshape the utility and adoption landscape of Bitcoin.