Fractal Bitcoin: Comprehensive Research Report

Fractal Bitcoin is an innovative Bitcoin scaling solution launched on September 9, 2024. It uses the Bitcoin core code to recursively scale to infinite levels, bringing new possibilities to the Bitcoin ecosystem.

Key Points

1. Innovative Mining Model: Fractal combines merged mining and permissionless mining, providing a new perspective on proof of work.

2. Bitcoin Test Network: Fractal is compatible with the Bitcoin mainnet, providing developers with a real testing environment.

3. Strong initial user base: By collaborating with OKX and UniSat, Fractal has attracted active Bitcoin users from the very beginning.

4. Community-Driven Strategy: Fractal adopts a pragmatic community-driven approach to avoid excessive hype.

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

Core Concepts and Technologies

• Native Bitcoin Expansion: Maintain full compatibility with the Bitcoin mainnet
• 30 seconds block time: Significantly improves transaction confirmation speed
• Hybrid mining mechanism: combines permissionless mining and pooled mining.
• Support for smart contracts: Implementing the OP_CAT opcode
• Parallel execution: allows different applications to run independent instances
• Full compatibility: 100% compatible with existing Bitcoin standards

Market Strategy

• Leverage UniSat's approximately 1 million weekly active users base
• Establish a partnership with OKX wallet
• Focus on trading volume rather than total locked value ( TVL ) as a core indicator.

Ecosystem Development

• Adhere to the principle of decentralization
• Implement user reward programs and developer incentive measures
• Adopt a retrospective funding model to support projects
• Supports multiple key projects, such as sCrypt, F2Pool, Nubit, etc.

Token Economics

• Token Name: FB (Fractal Bitcoin)
• Maximum supply: 210 million coins
• Main use: trading fees
• Token Allocation:
  • 50% for proof of work mining
• 15% Ecosystem Reserve Fund
• 10% Community Rewards
• 5% presale
• 5% Advisor Pool
• 15% Core Contributors

Core Team

• UniSat: Leading Bitcoin wallet provider
• Block Space Force: Experienced blockchain entrepreneurs and developers

Challenges and Risks

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

Conclusion

Fractal Bitcoin represents an innovative approach to the functional expansion of Bitcoin, with significant advantages such as native Bitcoin integration, technological innovation, and a strong initial user base. Despite facing challenges, its unique approach and early adoption signals show great potential, which could reshape the utility and adoption landscape of Bitcoin.