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, built on the world's most secure and widely held blockchain.

Key Points

1. Innovative mixed mining model: Combining merged mining and permissionless mining, providing a new perspective for PoW.

2. Bitcoin's Test Network: Compatible with the Bitcoin mainnet, providing developers with a real testing environment. The activation of OP_CAT marks the beginning of numerous anticipated experiments.

3. Strong initial user base: By partnering with OKX and UniSat, attract the most active Bitcoin users and avoid the common "cold start" issues faced by new platforms.

4. Community-Oriented Strategy: Maintain a pragmatic community-driven approach, avoiding excessive hype and institutional influence.

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

Core Concepts and Technologies

• Native Bitcoin scaling: Utilize the existing Bitcoin codebase while maintaining full compatibility.

• 30-second block time: Significantly improves transaction confirmation speed and network throughput.

• Mixed mining mechanism: combines permissionless mining and pooled mining to balance decentralization and security.

• Scalability: Supports unlimited layers of improvement, with each layer providing a 20-fold capacity increase.

• Smart Contract Functionality: Implements OP_CAT and 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 ).

Market Strategy and User Base

• Leverage the existing user base of UniSat and OKX wallets to avoid the "cold start" problem.

• Focus on trading volume rather than TVL as the core metric, showcasing real usage and adoption.

Ecosystem Development

• Adhere to the decentralized concept: Encourage diverse cross-chain bridge solutions and open development environments.

• Engage users and developers: through user reward programs and developer incentives.

• Funding program: adopts a retrospective model, rewarding based on the actual impact of the project.

• Featured projects: including sCrypt, F2Pool, Nubit, etc., covering infrastructure, mining, and application development.

Token Economics

• Token Name: FB( Fractal Bitcoin )
• Maximum supply: 210 million coins
• Main use: transaction fees

Allocation Strategy:

• 50% for PoW mining
• 15% Ecosystem Reserve Fund
• 10% Community Reward
• 5% Pre-sale
• 5% Consultant Pool
• 15% Core Contributors

Team and Partners

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

Challenges and Risks

• Programmability: The use of Bitcoin scripts may limit the number of developers.
• Technical Risks: Modifying core parameters of Bitcoin may introduce vulnerabilities.
• Adoption risk: It requires convincing users and developers to switch from existing solutions.

Conclusion

Fractal Bitcoin represents an innovative approach to the functional expansion of Bitcoin, with advantages such as native integration, technological innovation, and a strong user base. Despite facing challenges in programmability, technology, and adoption, its potential could reshape the utility and adoption landscape of Bitcoin. Investors and users should weigh the project's potential against risks and closely monitor its development.