Fractal Bitcoin: Depth Analysis Report

Abstract

Fractal Bitcoin will be launched on September 9, 2024, as a native scaling solution for Bitcoin, bringing new possibilities to the Bitcoin ecosystem through an innovative hybrid mining model and technical specifications. This report comprehensively analyzes Fractal's core concepts, technical features, ecosystem development strategies, and the challenges and opportunities it faces.

Main Highlights

1. An innovative mixed mining model that combines permissionless mining with Bitcoin joint mining.

2. 30 seconds block time and the implementation of the OP_CAT opcode supporting smart contracts.

3. Strategic cooperation with major wallets like UniSat brings a large active user base.

4. Community-driven ecosystem development strategies, including funding programs and developer incentives.

5. Facing challenges such as programmability, technology, and adoption, but showing great potential.

1. Introduction

Fractal Bitcoin is the only Bitcoin scaling solution that recursively extends infinite levels using the Bitcoin core code itself. It officially launched on September 9, 2024, and within just 24 hours, it accounted for over 40% of Bitcoin's total hash rate. 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 maintains full compatibility with the Bitcoin mainnet while achieving functional enhancements.

2.2 Technical Specifications

• Block time: 30 seconds
• Mixed mining mechanism: two permissionless mining in every three blocks, one joint mining.
• Scalability: Theoretically supports infinite layers of improvement
• Smart contract functionality: implemented through OP_CAT
• Parallel Execution: Allows different applications to run independent instances
• Compatibility: 100% compatible with Bitcoin standards

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 the UniSat or OKX wallet 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: more aligned with the ideals of Bitcoin purists
• Compared to Bitcoin Cash: adopts a local expansion approach, does not create a separate chain.
• Compared to the Lightning Network: provides comprehensive smart contract support, no channel management required

3.2 Market Strategy and Built-in User Base

• Relying on the UniSat wallet with about 1 million weekly active users
• Focus on trading volume rather than TVL as the core metric

4. Ecosystem Construction

4.1 Decentralization Concept

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

4.2 Start Users and Developers

• User Rewards Program: Distributing 1 million FB tokens to over 100,000 addresses
• OKX Wallet Cooperation
• Developer Incentive Program

4.3 Funding Plans and Project Evaluation

• Adopting a retrospective model
• Evaluation criteria include ecosystem contribution, technological innovation, etc.
• Support for diverse project types

4.4 Outstanding Funding Projects

including sCrypt, F2Pool, Nubit, DeTrading, UniWorlds, etc.

4.5 Future Outlook

• Expansion Funding Program
• Strengthen community participation
• Develop potential use cases such as advanced DeFi protocols, enhanced NFT functionalities, etc.
• Continuously support the development of scalable infrastructure
• Enhance cross-chain interoperability

5. Tokenomics and Economic Models

5.1 Token Details

• Name: FB (Fractal Bitcoin)
• Maximum Supply: 210 million
• 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%
• Pre-sale: 5%
• Advisor Pool:5%
• Core Contributors: 15%

5.3 Release and Lock-up Period

Different parts of the tokens have different lock-up periods and release schedules.

5.4 Transparency and OP_CAT Governance Voting Mechanism

Announce the official address and plan to adopt a governance voting mechanism based on OP_CAT.

6. Team and Partners

6.1 Core Contributors

• UniSat: The leading Bitcoin wallet with over 900,000 weekly active users.
• Block Space Force: The co-founders have extensive experience in blockchain projects.

6.2 Developer Platform Partnership

Get support from 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 Risks: Modifying core parameters of Bitcoin poses potential risks.
• Adoption risks: Convincing users to migrate from existing solutions can be challenging.

8. Conclusion

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