Comprehensive Research Report on Fractal Bitcoin

Summary

Fractal Bitcoin was launched on September 9, 2024, and is an innovative native scaling solution for Bitcoin. It employs a unique hybrid mining model that combines merged mining and free mining, providing a new perspective on Bitcoin scaling. As a pilot network for Bitcoin, Fractal offers developers a valuable testing environment. By collaborating with major wallets, Fractal has had a strong user base from the outset, avoiding the common "cold start" problem of new platforms. The project maintains a community-driven strategy, focusing on organic growth and participation.

Core Concepts and Technologies

Native Bitcoin Expansion

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

Technical Specifications

• Block time: 30 seconds, significantly improving transaction confirmation speed and network throughput
• Mixed mining mechanism: two free mining in every three blocks, one merged mining.
• Scalability: Supports infinite layers of improvement, with each layer providing a 20x capacity increase.
• Smart contract functionality: Achieve Turing completeness of smart contracts through OP_CAT
• Parallel Execution: Allows different applications to run independently optimized instances
• Compatibility: Fully compatible with Bitcoin standards ( such as BRC-20 and Ordinals )

unique user experience

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

The Position of Fractal in the Bitcoin Ecosystem

Compared to other Bitcoin scaling solutions, Fractal takes a more native approach to Bitcoin, which may align better with the ideals of Bitcoin purists. In contrast to the Lightning Network, Fractal offers complete support for smart contracts without the need for channel management.

Ecosystem Construction

Fractal is committed to decentralized and community-driven growth, encouraging diverse cross-chain bridge solutions and an open development environment. Through user reward programs and developer incentives, Fractal is actively nurturing the ecosystem. Several key projects have received support, including sCrypt, F2Pool, Nubit, and others.

Token Economics and Economic Models

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

Token Allocation:

• Proof of Work Mining: 50%
• Ecosystem Reserve Fund: 15%
• Community Reward: 10%
• Pre-sale: 5%
• Advisor Pool: 5%
• Core Contributors: 15%

The Fractal plan adopts a governance voting mechanism based on OP_CAT, allowing token holders to vote directly on proposals.

Team and Partners

Core contributors include the UniSat and Block Space Force teams, who have extensive experience in the cryptocurrency field. Fractal is supported by the Scrypt team and is building a smart contract meta-protocol.

Challenges and Risks

• Programmability: Bitcoin scripts can be a barrier for developers.
• Technical Risks: There are inherent risks associated with modifying core parameters and implementing new functionalities.
• Adoption Risk: Convincing users and developers to switch from established solutions to Fractal may be challenging.

Conclusion

Fractal Bitcoin represents an innovative approach to expanding Bitcoin's functionality, with advantages such as native integration, technological innovation, and a strong user base. Despite facing challenges, Fractal shows great potential, which could reshape the utility and adoption landscape of Bitcoin. Its success could profoundly impact the future of Bitcoin and the blockchain ecosystem.