Fractal Bitcoin: Comprehensive Research Report on Native Bitcoin Scaling Solutions

Summary

Fractal Bitcoin, launched on September 9, 2024, is an innovative Bitcoin scaling solution. The project achieves recursive scaling by modifying the Bitcoin core code, providing faster transaction speeds and more powerful smart contract functionalities while maintaining full compatibility with the Bitcoin mainnet. This research report comprehensively analyzes Fractal's core concepts, technical features, ecosystem development strategies, and the challenges and opportunities it faces.

Key Points

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

2. As the leading network for Bitcoin, it provides a testing environment for developers.

3. Collaborated with OKX and UniSat, having a large user base from the very beginning.

4. Community-driven development strategy, focusing on organic growth.

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

1. Introduction

Fractal Bitcoin is the only Bitcoin scaling solution that recursively extends the Bitcoin core code. It is built on top of the Bitcoin blockchain and aims to improve scalability and functionality.

The Fractal mainnet officially launched on September 9, 2024, at 00:00 UTC. Within 24 hours of the launch, Fractal's joint mining accounted for over 40% of Bitcoin's total hash rate, while free mining accounted for 2%. Large mining pools such as F2Pool, Antpool, and Spiderpool have joined the Fractal mining ecosystem.

2. Core Concepts and Technologies

2.1 Native Bitcoin Expansion

Fractal achieves full compatibility with the Bitcoin mainnet by modifying the existing Bitcoin codebase and block production parameters. This approach enhances functionality without affecting the core security model of Bitcoin.

2.2 Technical Specifications

• Block time: 30 seconds, significantly faster than Bitcoin's 10 minutes block time.

• Mixed mining mechanism: In every three blocks, two are permissionless mining, and one is joint mining with Bitcoin.

• Scalability: Theoretically supports unlimited layers of improvements, with each layer providing a 20-fold capacity increase compared to the Bitcoin mainnet.

• Smart Contract Functionality: Implements the OP_CAT opcode, supporting Turing-complete smart contracts.

• Parallel execution: Different applications can run on independently optimized Fractal layers.

• Compatibility: 100% compatible with Bitcoin standard ( such as BRC-20 and Ordinals).

2.3 Unique User Experience

The wallet address on Fractal is exactly the same as the mainnet address, and users only need to switch networks in UniSat or OKX wallets to access different layers.

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 Bitcoin's native approach, which may align more with the ideals of Bitcoin purists.

• Compared to Bitcoin Cash ( BCH ): Fractal has not created an independent chain, but instead embraces Bitcoin as the mainnet and seeks local expansion.

• Compared to the Lightning Network: Fractal provides comprehensive smart contract support, does not require channel management, and offers a simpler user experience.

3.2 Market Strategy and Built-in User Base

Fractal has a large user base from the very beginning, thanks to the support of approximately 1 million weekly active users from the UniSat wallet. This allows Fractal to avoid the "cold start" problem.

4. Ecosystem Construction

4.1 Decentralization Concept

• Encourage diverse cross-chain bridge solutions
• Open development environment
• Community-driven governance
• Distributed Infrastructure

4.2 Start Users and Developers

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

4.3 Funding Programs and Project Evaluation

• Adopt a retrospective mode
• Evaluation criteria include contributions to the ecosystem, technological innovation, etc.
• Supports a wide range of projects from infrastructure to application layer

4.4 Outstanding Funding Projects

• sCrypt: Enhancing the scripting capabilities of Fractal
• F2Pool: Contributing to the security of Fractal
• Nubit: Development data availability ( DA ) layer
• DeTrading: Supports cross-chain atomic swaps without the need for a central authority.
• UniWorlds: A toolkit for developing interoperable virtual worlds
• FractalEcosystem.io: Community-driven project directory

5. Token Economics and Economic Models

5.1 Token Details

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

5.2 Token Distribution

• Proof of Work Mining (50%)
• Ecosystem Reserve Fund (15% )
• Community Rewards (10%)
• Pre-sale (5%)
• Advisor Pool(5%)
• Core Contributor (15% )

5.3 Release and Lock-up Period

• Presale and core contributor tokens: 7 months lock-up period, then linear release over 12 months
• Ecosystem reserve fund and community rewards: Up to 10% released annually over 10 years.
• Advisor Token: A maximum of 20% will be released each year for 5 years.

5.4 Transparency and OP_CAT Governance Voting Mechanism

Fractal has announced the official addresses for each token distribution category and plans to implement an innovative governance voting mechanism based on OP_CAT.

6. Team and Partners

6.1 Core Contributors

• UniSat: A leading Bitcoin wallet with over 900,000 weekly active users
• Block Space Force: Team members have successfully built and scaled world-class projects such as Coinbase, CoinMarketCap, and Cobo.

6.2 Developer Platform Partnership

Fractal has received support from the Scrypt team, which is building a smart contract meta-protocol on Bitcoin using OP_CAT.

7. Challenges and Risks

• Programmability: The use of Bitcoin scripts may hinder developer adoption.
• Technical risks: Modifying Bitcoin's core parameters may introduce vulnerabilities or unintended consequences.
• Adoption Risk: Convincing users and developers to shift from established solutions to Fractal may be challenging.

8. Conclusion

Fractal Bitcoin represents an innovative Bitcoin scaling method, with advantages such as native integration, technological innovation, and strong ecosystem support. Despite facing challenges in programmability, technology, and adoption, Fractal shows great potential and may reshape the utility and adoption landscape of Bitcoin. Its success could profoundly impact the future development of Bitcoin and the entire blockchain ecosystem.