Fractal Bitcoin: Depth Research Report

Summary

Fractal Bitcoin was launched on September 9, 2024, and is an innovative Bitcoin scaling solution. It uses the Bitcoin core code to achieve infinitely recursive scaling with full compatibility with the Bitcoin mainnet. Fractal introduces technological innovations such as a 30-second block time, a hybrid mining mechanism, and OP_CAT support, significantly enhancing transaction speed and smart contract functionality.

Key Points

1. Innovative Mining Model: Fractal combines merged mining and free mining, encouraging decentralization while ensuring network security.

2. Bitcoin Testnet: Provides developers with a real testing environment, supporting experimental features such as OP_CAT.

3. Large User Base: Collaborating with OKX and UniSat, it attracted the most active users in the Bitcoin ecosystem from the very beginning.

4. Community-Driven Strategy: Adopt a pragmatic community-oriented approach to avoid excessive hype and institutional influence.

5. Ecosystem Integration: Successfully integrated key participants of the Bitcoin ecosystem such as BRC-20, Ordinals, and Runes.

1. Introduction

Fractal Bitcoin is the first Bitcoin scaling solution to implement infinite hierarchical recursive expansion using the Bitcoin core code. It is built on the world's most secure and widely held blockchain, providing a new perspective on the long-standing Bitcoin scalability issue.

The Fractal mainnet officially launched on September 9, 2024, achieving significant success. Within 24 hours, Fractal's joint mining accounted for over 40% of Bitcoin's total hash rate, with free mining representing 2% of Bitcoin's hash rate. Major mining pools such as F2Pool, Antpool, and Spiderpool have joined the Fractal mining ecosystem, indicating the industry's high interest in the project.

2. Core Concepts and Technologies

2.1 Native Bitcoin Expansion

Fractal, as the native extension of Bitcoin, utilizes the existing codebase and modifies block production parameters to achieve full compatibility with the Bitcoin mainnet. This approach enhances functionality without compromising the core security model of Bitcoin.

2.2 Technical Specifications

• Block time: 30 seconds, significantly faster than Bitcoin's 10 minutes block time.
• Mixed mining mechanism: Two out of every three blocks are free mining, and one is joint mining.
• Scalability: Theoretically supports unlimited layer expansion, with each layer providing a 20x capacity increase.
• Smart Contracts: 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 exactly the same as on the mainnet, and users only need to switch networks in UniSat or OKX wallets to access different layers. This design offers the convenience similar to Ethereum, simplifying the user experience.

3. The Position of Fractal in the Bitcoin Ecosystem

Comparison of 3.1 with Other Bitcoin Solutions

• EVM-compatible Layer 2: Fractal adopts a native Bitcoin approach, which may be more appealing to Bitcoin purists.
• Bitcoin Cash ( BCH ): Fractal did not create an independent chain, but instead expanded the Bitcoin mainnet.
• Lightning Network: Fractal provides comprehensive smart contract support without the need for channel management.

3.2 Market Strategy and Built-in User Base

Fractal leverages the approximately 1 million weekly active users of UniSat to directly meet their demand for a cheaper, faster, and feature-rich trading environment. This built-in user base gives Fractal a significant advantage in overcoming the "cold start" problem.

4. Ecosystem Construction

4.1 Decentralization Concept

• Diversified 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
• OKX Wallet Partnership
• Developer Incentive Program

4.3 Funding Programs and Project Evaluation

• Retrospective mode
• Support for diverse project types

4.4 Prominent Funding Projects

• sCrypt: Enhanced scripting capabilities
• F2Pool: Provides mining support
• Nubit: Develop data availability layer
• DeTrading: Supports trustless cross-chain swaps
• UniWorlds: Development of Virtual World Toolkit
• FractalEcosystem.io: Community-Driven Project Directory

4.5 Future Outlook

• Expansion Funding Program
• Deepen community participation
• Explore new use cases such as advanced DeFi and enterprise solutions
• Enhance cross-chain interoperability

5. Token Economics and Economic Models

5.1 Token Details

• Name: FB( Fractal Bitcoin )
• Maximum Supply: 210 million coins
• Total Supply: 105,153,225 pieces
• Circulating Supply: 1,213,225 coins
• Main use: transaction fees

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 Lockup Period

• Presale and core contributor tokens: 7 months lock-up, followed by 5 months linear release
• Ecosystem reserve fund and community rewards: Up to 10% released annually over 10 years.
• Advisory Token: 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: Leading Bitcoin wallet with 900,000 weekly active users
• Block Space Force: The co-founders have extensive experience in projects such as Coinbase and CoinMarketCap.

6.2 Developer Platform Partnership

Collaborate with the Scrypt team to jointly develop smart contract standards and best practices.

7. Challenges and Risks

• Programmability: Bitcoin scripts are relatively complex, which may limit the number of developers.
• Technical Risk: Modifying core parameters may introduce vulnerabilities
• Adoption Risk: Convincing users to migrate from existing solutions can be challenging.

8. Conclusion

Fractal Bitcoin represents an innovative approach to expanding Bitcoin's functionality, with advantages such as native integration, technological innovation, and a large user base. Despite facing challenges like programmability and adoption barriers, Fractal shows the potential to reshape the Bitcoin ecosystem. Its success could profoundly impact the future development of Bitcoin and the entire blockchain industry.