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 pooled mining and free mining, quickly capturing a significant portion of Bitcoin's hash power shortly after its launch. As a native extension of Bitcoin, Fractal maintains full compatibility with the Bitcoin mainnet while offering faster block times and smart contract capabilities. This study aims to analyze in depth the technical features of Fractal, ecosystem building strategies, and its position within the Bitcoin ecosystem.

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 the Bitcoin blockchain and aims to address the scalability and functionality challenges that Bitcoin has long faced.

Fractal's mainnet officially launched on September 9, 2024. Within 24 hours of launching, Fractal's joint mining accounted for over 40% of Bitcoin's total hash rate, while free mining represented 2% of Bitcoin's hash rate. Major mining pools such as F2Pool, Antpool, and Spiderpool have joined Fractal's mining ecosystem, showing high confidence in the project.

2. Core Concepts and Technologies

2.1 Native Bitcoin Expansion

Fractal, as a native extension of Bitcoin, utilizes Bitcoin's existing codebase and modifies block production parameters while maintaining full compatibility with the Bitcoin mainnet. This approach enhances functionality without impacting the core security model of Bitcoin.

2.2 Technical Specifications

• Block time: 30 seconds, significantly faster than Bitcoin's 10 minutes block time.
• Hybrid mining mechanism: In every three blocks, two are free mining, and one is joint mining with Bitcoin.
• Scalability: Theoretically supports unlimited layers of improvements, with each layer providing a 20-fold capacity increase compared to the Bitcoin mainnet.
• Smart contract feature: Implements OP_CAT opcode, supports Turing complete smart contracts
• 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 exactly the same as the Bitcoin mainnet address, and 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

• Compared to EVM-compatible Layer 2: Fractal adopts a native Bitcoin approach, which may be more in line with the ideals of Bitcoin purists.
• Unlike Bitcoin Cash (BCH): Fractal does not create an independent chain, but embraces Bitcoin as the main network and seeks local expansion.
• Compared to the Lightning Network: Fractal offers comprehensive smart contract support, does not require channel management, and provides a simpler user experience.

3.2 Market Strategy and Built-in User Base

Fractal, relying on UniSat's approximately 1 million weekly active user base, effectively avoids the "cold start" problem. By focusing on trading volume rather than TVL, Fractal demonstrates real usage and adoption.

4. Ecosystem Construction

4.1 Decentralization Concept

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

4.2 Launch Users and Developers

• User Reward Program: Distributing 1 million FB tokens to over 100,000 eligible addresses.
• Collaborate with OKX wallet to expand the potential user base
• Developer Incentive Program

4.3 Funding Programs and Project Evaluation

• Adopt a retrospective funding model
• Evaluation criteria include contributions to the ecosystem, technological innovation, etc.
• A wide range of projects supporting innovation from core infrastructure to application layer.

4.4 Outstanding Funding Projects

• sCrypt: Enhance the scripting capabilities of Fractal
• F2Pool: Contributing to the security of Fractal
• Nubit: Develop data availability ( DA ) layer
• DeTrading: Supports cross-chain atomic swaps without a central authority.
• UniWorlds: A toolkit for developing and building interoperable virtual worlds
• FractalEcosystem.io: Community-driven project directory

4.5 Future Outlook

• Expansion Funding Program
• Deepen community engagement
• Supports a wide range of future applications, such as advanced DeFi protocols, enhanced NFT functionalities, etc.
• Continue developing scalable infrastructure
• Enhance interoperability with other blockchain ecosystems

5. Token Economics and Economic Models

5.1 Token Details

• Name: FB( Fractal Bitcoin )
• Max Supply: 210 million tokens
• 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 Rewards (10%)
• Pre-sale (5%)
• Consultant Pool (5%)
• Core Contributor (15% )

5.3 Release and Lock-up Period

• Pre-sale and core contributor tokens: seven-month lock-up period, followed by linear release over twelve months.
• Ecosystem reserve and community rewards: up to 10% released annually over 10 years.
• Advisor tokens: Up to 20% released each year for 5 years

5.4 Transparency and OP_CAT Governance Voting Mechanism

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

6. Team and Partners

6.1 Core Contributors

• UniSat: A leading Bitcoin wallet with over 900,000 weekly active users
• Block Space Force: The co-founders are experienced in building and scaling world-class projects.

6.2 Developer Platform Partnership

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

7. Challenges and Risks

• Programmability: The use of Bitcoin scripts may hinder developer adoption.
• Technical risk: Modifying core parameters of Bitcoin and implementing new features carries the risk of introducing vulnerabilities.
• Adoption risks: may face resistance from Bitcoin extremists and the difficulty of persuading users to migrate from existing platforms.

8. Conclusion

Fractal Bitcoin represents an innovative method of Bitcoin scaling, featuring advantages such as native integration, technological innovation, a built-in user base, and strong mining support. Despite facing challenges in programmability, technology, and adoption, Fractal shows potential to reshape the utility and adoption landscape of Bitcoin. Its success could have far-reaching implications for Bitcoin and the entire blockchain ecosystem. Investors and users should weigh the project's potential against the risks and closely monitor its development.