Fractal Bitcoin Comprehensive Research Report

Summary

Fractal Bitcoin was launched on September 9, 2024, as an innovative Bitcoin scaling solution. It adopts a unique hybrid mining model, combining merged mining and free mining, providing new scaling perspectives for Bitcoin. As a leading network for Bitcoin, Fractal offers developers a valuable testing environment. Through collaboration with major wallets and mining pools, Fractal has had a strong user base from the beginning, avoiding the common "cold start" problem. This report aims to comprehensively analyze Fractal's technological innovations, ecosystem development, market strategies, and the challenges and opportunities it faces.

1. Introduction

Fractal Bitcoin is the only Bitcoin scaling solution that recursively extends infinite layers using the Bitcoin core code. It is built on top of the Bitcoin blockchain and aims to address the long-standing scalability and functionality enhancement issues of Bitcoin.

The Fractal mainnet officially launched on September 9, 2024, and has achieved significant success since its launch. 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. Several large mining pools such as F2Pool, Antpool, and Spiderpool have joined the Fractal mining ecosystem.

2. Core Concepts and Technologies

2.1 Native Bitcoin Scaling

Fractal, as a native extension of Bitcoin, utilizes the existing Bitcoin codebase and modifies block production parameters while maintaining complete compatibility with the Bitcoin mainnet. This approach achieves functionality enhancements without affecting the core security model of Bitcoin.

2.2 Technical Specifications

• Block time: 30 seconds, significantly improving transaction confirmation speed and network throughput.
• Mixed mining mechanism: two free mining every three blocks, one joint mining.
• Scalability: Supports unlimited hierarchical expansion, with each layer providing a 20-fold capacity increase.
• Smart contract functionality: Implement OP_CAT opcode, support 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.

2.3 Unique User Experience

The wallet address on Fractal is completely identical to the Bitcoin mainnet, and users can access different levels by simply switching networks in supported wallets.

3. The Position of Fractal in the Bitcoin Ecosystem

Comparison of 3.1 with Other Bitcoin Solutions

• Compared to EVM-compatible Layer 2: Fractal adopts a native Bitcoin approach, which may align more with the ideals of Bitcoin purists.
• Compared to Bitcoin Cash (BCH): Fractal does not create an independent chain, but instead expands the Bitcoin mainnet.
• Compared to Lightning Network: Fractal offers complete smart contract support without the need for channel management.

3.2 Market Strategy and Built-in User Base

Fractal relies on the UniSat wallet's approximately 1 million active users per week, which has provided it with a strong user base from the very beginning. This allows Fractal to avoid the "cold start" problem, giving it a significant advantage compared to other new projects.

4. Ecosystem Construction

4.1 Decentralization Concept

• Encourage diverse cross-chain bridge solutions
• Open Development Environment
• Community-driven governance
• Distributed Infrastructure

4.2 Launching Users and Developers

• User Reward Program: Distributing 1 million FB tokens to over 100,000 eligible addresses.
• Collaborating with OKX Wallet
• Developer Incentive Program

4.3 Funding Programs and Project Evaluation

• Adopting a post-event retrospective funding model
• Evaluation criteria include ecosystem contributions, technological innovations, etc.
• Support for diverse project types

4.4 Prominent Funding Projects

• sCrypt: Enhanced scripting capabilities
• F2Pool: Provides mining support
• Nubit: Development of a Data Availability Layer
• DeTrading: supports trustless cross-chain swapping
• UniWorlds: Development Virtual World Toolkit
• FractalEcosystem.io: Community-driven project directory

5. Token Economics and Economic Models

5.1 Token Details

• Name: FB ( Fractal Bitcoin )
• Maximum supply: 210 million pieces
• Total Supply: 105,153,225.00000000
• Circulating Supply: 1,213,225.00061300
• Main Use: Transaction Fees

5.2 Token Allocation

• Proof of Work Mining:50%
• Ecosystem Reserve Fund: 15%
• Community Rewards: 10%
• Presale: 5%
• Advisor Pool: 5%
• Core Contributors: 15%

5.3 Release and Lock-up Period

• Presale and core contributor tokens: 7 months lockup, followed by 5 months linear release
• Ecosystem reserve and community rewards: A maximum of 10% released annually over 10 years.
• Advisor Token: Up to 20% released each year for 5 years

5.4 Transparency and OP_CAT Governance Voting Mechanism

• Announce the official address for each token allocation category.
• The governance voting mechanism based on OP_CAT is planned to be adopted.

6. Team and Partners

6.1 Core Contributors

• UniSat: A leading Bitcoin wallet with over 900,000 weekly active users.
• Block Space Force: Co-founders have experience in building globally recognized blockchain projects.

6.2 Developer Platform Partnership

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

7. Challenges and Risks

• Programmability: Bitcoin scripts are relatively complex, which may hinder developer adoption.
• Technical Risk: Modifying core parameters of Bitcoin may introduce vulnerabilities.
• Adoption risk: persuading users to migrate from existing solutions may be challenging

8. Conclusion

Fractal Bitcoin represents an innovative approach to Bitcoin functionality expansion, with advantages such as native integration, technological innovation, and a strong user base. Despite facing some challenges, Fractal demonstrates the potential to reshape the Bitcoin application landscape. Its success could have far-reaching implications for the Bitcoin and blockchain ecosystem. Investors and users should weigh the project's potential against the risks and closely monitor its development.