Fractal Bitcoin: Depth Analysis Report

Summary

Fractal Bitcoin will be launched on September 9, 2024, and is an innovative Bitcoin scaling solution. This report provides an in-depth analysis of Fractal's core concepts, technical features, ecosystem development strategies, and the challenges and opportunities it faces.

1. Introduction

Fractal Bitcoin is a unique Bitcoin scaling solution that utilizes the Bitcoin core code to achieve infinite levels of recursive scaling. The project officially launched on September 9, 2024, and quickly gained significant attention, with joint mining accounting for over 40% of the total Bitcoin hash rate.

2. Core Concepts and Technologies

2.1 Native Bitcoin Expansion

Fractal, as a native extension of Bitcoin, maintains complete compatibility with the Bitcoin mainnet, achieving functional enhancements without compromising the core security model.

2.2 Technical Specifications

• Block time: 30 seconds
• Hybrid mining mechanism: permissionless mining combined with pooled mining
• Scalability: Supports unlimited levels of expansion
• Smart contract feature: implemented through OP_CAT
• Parallel execution: allows different applications to optimize independently
• Compatibility: 100% compatible with Bitcoin standard

2.3 User Experience

The wallet address on Fractal is the same as the mainnet address, allowing users to easily switch between different levels, providing convenience similar to Ethereum.

3. The Position of Fractal in the Bitcoin Ecosystem

Comparison with Other Solutions 3.1

Compared to EVM compatible Layer 2, Bitcoin Cash, and the Lightning Network, Fractal adopts a native Bitcoin approach, providing more comprehensive functional support.

3.2 Market Strategy

Fractal, leveraging the user base of the UniSat wallet, has approximately 1 million weekly active users, avoiding the common "cold start" problem.

4. Ecosystem Development

4.1 Decentralization Concept

Fractal is dedicated to diversified cross-chain bridge solutions, an open development environment, and community-driven governance.

4.2 User and Developer Incentives

Attract participation through user reward programs, OKX wallet collaboration, and developer funding.

4.3 Funding Program

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

4.4 Featured Projects

Including key projects such as sCrypt, F2Pool, Nubit, etc. receiving support.

4.5 Future Outlook

Plan to expand the funding program, deepen community engagement, and support diversified application development.

5. Token Economics

5.1 Token Details

• Name: FB (Fractal Bitcoin)
• Maximum Supply: 210 million
• Main usage: transaction fees

5.2 Token Allocation

• Mining:50%
• Ecosystem Reserve Fund: 15%
• Community Rewards: 10%
• Pre-sale: 5%
• Consultant Pool: 5%
• Core Contributors: 15%

5.3 Release and Lock-up Period

It has locking periods of different durations and a linear release mechanism.

5.4 Governance Mechanism

The plan is to adopt a governance voting mechanism based on OP_CAT.

6. Team and Partners

Core contributors include the UniSat and Block Space Force teams, which have extensive industry experience.

7. Challenges and Risks

• Programmability: Bitcoin scripts have a high barrier to entry
• Technical Risk: Modifying core parameters of Bitcoin poses potential hazards.
• Adoption Risks: Facing resistance from Bitcoin extremists and the network effects challenge of existing solutions.

8. Conclusion

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