Fractal Bitcoin: Comprehensive Research Report

Summary

Fractal Bitcoin was launched on September 9, 2024, as an innovative Bitcoin scaling solution. It uses the Bitcoin core code to recursively scale to infinite levels, providing faster transaction speeds and smart contract capabilities while maintaining full compatibility with the Bitcoin mainnet. Despite being launched only a few days ago, Fractal has already captured a significant portion of Bitcoin's hash power, demonstrating strong appeal. This study aims to comprehensively analyze Fractal's technological innovations, market strategies, and ecosystem development.

Main Highlights

1. An innovative hybrid mining model that combines merged mining and free mining.

2. As a leading network for Bitcoin, it provides an experimental environment for developers.

3. By collaborating with OKX and UniSat, we have a strong user base from the very beginning.

4. Adopt a pragmatic community-driven strategy to avoid excessive hype.

5. Successfully integrate key participants in the Bitcoin ecosystem, including the BRC-20, Ordinals, and Runes communities.

Core Concepts and Technologies

• As a native extension of Bitcoin, it maintains full compatibility with the main network.
• 30 seconds block time, significantly improves transaction speed.
• Unique mixed mining mechanism that encourages decentralization and security.
• Supports unlimited layer expansion, with each layer providing a 20x capacity increase.
• Achieve Turing-complete smart contracts through OP_CAT.
• Allows different applications to run independently optimized instances.

Market Strategy and User Base

• Around 1 million weekly active users using the UniSat wallet.
• Collaborate with OKX wallet to expand potential user base.
• Focus on trading volume rather than total locked value ( TVL ) as a core metric.

Ecosystem Construction

• Adhere to the concept of decentralization, encouraging diverse cross-chain bridges and an open development environment.
• Promote participation through user reward programs and developer incentives.
• Adopting a retrospective funding model, rewards are based on the actual impact of the project.
• A wide range of projects supporting innovation from core infrastructure to application layer.

Token Economics

• Maximum supply of 210 million FB tokens.
• 50% allocated to PoW mining, 15% for ecosystem reserves, 10% for community rewards.
• Adopting a transparent token distribution and locking mechanism.
• The governance voting mechanism based on OP_CAT will be implemented.

Team and Partners

• Core contributors include the UniSat and Block Space Force teams.
• Collaborate with the Scrypt team to develop smart contract standards.

Challenges and Risks

• Programmability: The use of Bitcoin scripts may hinder developer adoption.
• Technical Risk: Modifying core parameters of Bitcoin carries potential vulnerability risks.
• Adoption Risks: Need to overcome the network effects of existing solutions.

Conclusion

Fractal Bitcoin represents an innovative approach to the expansion of Bitcoin, standing out through native integration, technological innovation, and a strong initial user base. Despite facing challenges, its rapid growth in computing power and ecosystem development since launch shows immense potential. Fractal is expected to become an important platform for reshaping the utility and adoption landscape of Bitcoin, making its future development worthy of close attention.