Fractal Bitcoin: Comprehensive Research Report

Summary

Fractal Bitcoin was launched on September 9, 2024, and has attracted widespread attention as an innovative Bitcoin scaling solution. This study aims to conduct an in-depth analysis of the Fractal project, exploring its technological innovations, ecosystem development, and positioning within the Bitcoin ecosystem.

Key Points

1. Innovative Mining Model: Fractal adopts a hybrid mining model that combines merged mining and free mining, providing a new perspective for the proof-of-work mechanism.

2. Bitcoin Test Network: As a compatible network to the Bitcoin mainnet, Fractal provides developers with a practical testing environment to support potential Bitcoin upgrades and innovations.

3. Strong user base: By collaborating with major wallets, Fractal has attracted active Bitcoin users from the very beginning, avoiding the common cold start problem of new platforms.

4. Community-oriented: Fractal adopts a pragmatic community-driven strategy, focusing on organic growth and user participation.

5. Ecological Integration: Successfully integrated key participants in the Bitcoin ecosystem, including the BRC-20, Ordinals, and Runes communities.

1. Introduction

Fractal Bitcoin is the first Bitcoin scaling solution that recursively expands using the Bitcoin core code. Its mainnet will be launched on September 9, 2024, and it has quickly captured a significant portion of Bitcoin's hash power, demonstrating strong appeal.

2. Core Concepts and Technologies

2.1 Native Bitcoin Expansion

Fractal achieves full compatibility with the Bitcoin mainnet by modifying the block production parameters in the existing Bitcoin codebase.

2.2 Technical Specifications

• Block time: 30 seconds
• Mixed mining mechanism: 2/3 free mining, 1/3 merged mining
• Scalability: Supports unlimited layer expansion
• Smart Contract: Achieving Turing Completeness through OP_CAT
• Parallel execution: allows applications to run independent instances
• Compatibility: 100% compatible with Bitcoin standards such as BRC-20 and Ordinals.

2.3 User Experience

The wallet address on Fractal is the same as the mainnet, allowing users to easily switch between different networks.

3. The Position of Fractal in the Bitcoin Ecosystem

Comparison with Other Solutions 3.1

Compared to EVM-compatible solutions, Bitcoin Cash, and the Lightning Network, Fractal uses a native Bitcoin scaling approach, offering more comprehensive functional support.

3.2 Market Strategy

With the user base of the UniSat wallet, Fractal has had a large number of active users from the very beginning, avoiding the cold start problem.

4. Ecosystem Construction

4.1 Decentralization Concept

Encourage diversified cross-chain bridges, open development environments, community-driven governance, etc.

4.2 User and Developer Incentives

Attract participation through token distribution, partnerships, and developer funding programs.

4.3 Funding Program

Adopt a retrospective funding model to reward based on the actual impact of the project.

4.4 Key Funding Projects

Including several key projects such as sCrypt, F2Pool, and Nubit.

4.5 Future Outlook

Plan to expand funding programs, increase community engagement, and support more potential use cases.

5. Token Economics and Economic Models

5.1 Token Details

• Name: FB ( Fractal Bitcoin )
• Max Supply: 210 million
• Main Use: Transaction Fees

5.2 Token Allocation

• 50% for Proof of Work mining
• 15% Ecosystem Reserve Fund
• 10% Community Reward
• 5% presale
• 5% Advisor Pool
• 15% Core Contributors

5.3 Release and Lock-up Period

Different tokens in each part have varying lock-up periods and release mechanisms.

5.4 Governance Mechanism

The plan is 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, with rich experience in blockchain projects.

6.2 Developer Platform Cooperation

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

7. Challenges and Risks

• Programmability: The learning curve for Bitcoin scripts is relatively high.
• Technical risk: Modifying core parameters of Bitcoin poses potential risks.
• Adoption risk: It is necessary to persuade users and developers to migrate from existing solutions.

8. Conclusion

Fractal Bitcoin offers an innovative solution for Bitcoin scaling, featuring native integration, technological innovation, and a strong user base. Despite facing some challenges, its potential is immense and could have a profound impact on the Bitcoin ecosystem. Investors and users should closely monitor its development, weighing the potential against the risks.