Exploring the New Star of Bitcoin: Can Fractal Lead Ecological Innovation?

Since September, with the heated discussions triggered by Fractal, the market focus has returned to the entire Bitcoin ecosystem. A large number of users have participated in the assets and gameplay launched by Fractal, leading to high on-chain gas fees. The reasons why Fractal can attract such great attention are mainly the following:

First of all, the current overall market is sluggish, lacking fresh narratives. Secondly, based on the precedent of a certain wallet's generous airdrop, many users have high hopes for the launch of Fractal, leading to extreme competition during the testnet phase. It is estimated that over one million addresses participated in the related testnet tasks in hopes of receiving airdrop rewards. Finally, the high return effects brought by asset protocols like Cat20, along with the continuous fermentation of the profit effect, further boosted the popularity of Fractal.

In addition, the official hunger marketing strategy of a certain wallet has also fueled the situation. Originally, the circulating supply of the airdropped FB was very small, but as on-chain competition intensified, the price of FB soared, becoming a kind of "golden shovel" in a sense, which indirectly accelerated the development of Fractal.

Based on the above reasons, a deep analysis of Fractal is particularly necessary.

Fractal Overview: Bitcoin Native Scalability Solution

Fractal Bitcoin is a recursive scalability solution that expands infinitely on the basis of Bitcoin's core code. It is designed as a second-layer network or sidechain of Bitcoin, serving as a native expansion of the first-layer network, enhancing transaction efficiency by accelerating block production speed and increasing block capacity while maintaining orthodoxy. Its working principle includes full compatibility with the Bitcoin mainnet, allowing users to trade on the fractal network and subsequently synchronize with the mainnet, while also providing faster confirmation speeds, such as 30 seconds per block, and a capacity that is 20 times larger than that of the mainnet.

As a native expansion solution, Fractal can initiate cross-layer secure asset transfers starting from the Bitcoin main chain. Assets such as Bitcoin, BRC-20, and Ordinals can be bridged through decentralized methods. The underlying mechanism employs dynamically replaceable rotating multi-signatures while considering the characteristics of the BRC-20 standard.

Fractal functions more like the Bitcoin testnet, supporting some features that have not yet been activated on the mainnet in advance. It is an ideal experimental field that can provide better user experience and performance optimization, making it very suitable for innovative attempts in complex applications. At the same time, it allows users to participate and provide feedback in a real environment, similar to the significance of the EVM layer two network to Ethereum.

Investment and Financing: Strong Partnership to Promote Development

The fractal Bitcoin network was developed in collaboration between a well-known Bitcoin wallet and a cryptocurrency fund. As the main developer, the wallet has over 900,000 active users each week and has raised undisclosed amounts in five rounds of financing, with two rounds led by two well-known exchanges and participation from multiple investment institutions.

The partner is a crypto-native fund with a portfolio that includes several well-known projects, possessing rich experience in dollar exits and investing in hundredfold return projects, as well as developing globally popular blockchain applications. Overall, the resources of a certain wallet are more outstanding, as it has attracted a large number of loyal users through successful brand operations and previous generous token airdrops, undoubtedly making it the best endorsement for Fractal.

Driven by the resources of both parties, Fractal has implemented a series of strategic plans to promote user and developer participation. After the mainnet launch, 1 million FB tokens were airdropped to over 100,000 eligible addresses, and multiple developer resource support programs were launched, reflecting Fractal's ambition for ecological construction.

Fractal Highlights: Advantages Highlighted

The main highlights of Fractal lie in the performance optimization and improvements based on the Bitcoin mainnet, as well as the introduction of related asset issuance methods and ecological applications. Figuratively speaking, Fractal is like using the "old bottle" of Bitcoin mainnet resources to hold the "new wine" of the brand new asset issuance methods. Specifically:

The overall design of Fractal allows Bitcoin and assets like BRC-20 and Ordinals to be bridged through a decentralized bridge. Users' transaction records on the Fractal network can then interact or sync with the Bitcoin mainnet, while providing faster confirmation speeds and greater block capacity.

Implementation Path: Multi-layer Expansion, Mining Mechanism and OP_CAT

( Multi-Layer Expansion Mechanism

Fractal enhances Bitcoin transaction speed by recursively extending layers, establishing multi-level extension layers on the main chain, forming a tree structure. This design allows each layer to further fork, increasing the network's parallel processing capability. Each layer can independently handle transactions and dynamically adjust the number of layers as needed. During peak transaction times, layers can be rapidly increased to handle more transactions, enabling the network to flexibly respond to various loads.

This is similar to how other Layer 2 networks and sidechains build an additional highway, while Fractal can construct countless highways running parallel to the Bitcoin mainnet. Each highway can both expand the mainnet and extend other highways. This way, each has its unique value proposition, and users do not need to change their "vehicles" to solve congestion issues.

) Cadence Mining ( Cadence Mining )

Fractal uses the same proof-of-work consensus mechanism as Bitcoin, which means that Bitcoin miners can seamlessly transition to Fractal block mining using existing ASIC, GPU, and other hardware, effectively achieving two goals with one action. By sharing the workload, efficiency is improved, providing miners with additional economic benefits.

The mining method of Fractal is divided into permissionless and merged mining. Out of every three blocks, two are generated through permissionless mining and one through merged mining. Permissionless mining allows anyone to participate, while merged mining is specifically designed for Bitcoin miners, allowing them to mine two types of blocks simultaneously without additional computing power.

( OP_CAT

OP_CAT is an opcode in the Bitcoin scripting language that was originally used for string concatenation but was removed in 2010 due to security concerns. Its benefit lies in the ability to construct more complex trustless Bitcoin infrastructure, which is critical for implementing advanced transaction conditions and functionalities. The introduction of OP_CAT by Fractal can bring more development possibilities to the Bitcoin ecosystem, such as on-chain applications, smart contracts, and more.

![Exploring the new darling of BTC: Is Fractal an ecological revolution or a follower?])https://img-cdn.gateio.im/webp-social/moments-1686b51d2ee16e9d7c7eac350063e6b8.webp###

Fractal Token Economics

The fractal Bitcoin mainnet mainly consumes two types of tokens: FB as general gas, and SATS as the exclusive gas for a certain decentralized exchange.

The total issuance of FB is 210 million coins. After the mainnet goes live, only the tokens generated through mining can circulate, while other tokens are subject to a lock-up mechanism, with private placement locked for six months.

The allocation plan is as follows:

• 50% for Proof of Work mining, Bitcoin miners can directly mine FB.
• 15% allocated to the ecosystem treasury for investing in and supporting Fractal ecological projects. A maximum of 10% of the total available amount can be used each year for 10 years.
• 15% allocated to core contributors for building and maintaining the Fractal core software. All tokens are locked for 7 months and will be released linearly over 12 months.
• 10% for community subsidies, establishing partnerships, and liquidity programs. Up to 10% of the total available amount can be used each year for 10 years.
• 5% allocated to early investors and network participants, all tokens locked for 7 months and released linearly within 12 months.
• 5% allocated to project advisors. Up to 20% of the total amount can be used each year for 5 years.

Currently, the official has not clearly stated whether there will be airdrop rewards for testnet participants. If there are, they may be allocated from community subsidies or the ecosystem treasury. Although the 5% for advisors, 10% for community subsidies, and 15% for the ecosystem treasury are unlikely to be misappropriated, the remaining 45% still controlled by the official poses certain risks, especially with 5% allocated to investors and 50% used for mining having time costs.

To ensure transparency, the official has published the following addresses for users to track the use of funds:

• Ecosystem Treasury ###15%(: bc1pukzhdkdghqajp3zvwkx65e7uv5zma6lzalet4xauf3p5c0vdg8wqk2avv6
• Community Grant )10%###: bc1pdrqk5xv3tfpmdsuegnt5a63xucf475r3l0vqg6zulwmtzezg7h6sd2pqx3
• Presale (5%): bc1put2rhzx0cwz552epm25dt2rexg2tzx9sws2sjcezsjm9y7h7ct8svhpzf2
• Advisor (5%): bc1pm2h0420vmgayhzs59d5nf0mzjlf3q6vrnlpqytefe3rk6a8ku3zq59walm
• Main Contributor (15%): bc1ppvqe8ugt27kgw4trvnzjvcfzn52702tq2ahe7cgzw0jsv67vrhysvgnndz

Fractal Ecosystem Overview

( CAT 20

The most popular ecological protocol in Fractal is undoubtedly the CAT20 protocol launched by CAT Protocol. This protocol was released on September 11, with a total of 21 million, and the code shows signs of development by Chinese individuals, while specific information about the project team has not been disclosed. Despite potential risks, a large number of users rushed to mint due to community sentiment and the spread by various KOLs, leading to a surge in on-chain Gas fees to nearly 7000. The excitement pushed the official token FB to a high price of 40U, reflecting the level of enthusiasm in the crypto community for CAT20.

Compared to the existing Bitcoin protocol, the main innovation of CAT20 lies in the use of the OP_CAT opcode, which perfectly fits the Fractal ecosystem. Its modular and programmable minting provides flexible and composable rules for complex DApps such as AMM, lending, and staking. Another feature is that transactions are fully verified by miners, reducing reliance on indexers and enhancing the security of the protocol.

As of the time of writing, a certain wallet indicated that the CAT20 trading market is under research, with official resources support coming soon. However, the official social media account of the CAT20 protocol was suddenly frozen, adding uncertainty to its future development. Since the protocol is still in its early stages, its feasibility remains to be further observed and verified.

![Exploring the New Favorite of BTC: Is Fractal an Ecological Revolution or a Follower?])https://img-cdn.gateio.im/webp-social/moments-2b583156ca830db2afaaedb3d9a017cf.webp(

) BTCTerminal

BTCTerminal has performed well in terms of social media attention and KOL recognition. It was originally an infrastructure provider for the Runes protocol, but later decided to rebrand and integrate into fractal Bitcoin. Currently, it has launched a comprehensive trading market for the fractal Bitcoin ecosystem, supporting features such as checking Mint progress and wallet balance, and will also support Cat721 in the future. Recently, the official team launched a mining pool activity that allows renting ASIC mining power to participate in FB mining, with a total limit of $50,000, but the specific risk and return need to be assessed comprehensively.

( UniWorlds

UniWorlds is a metaverse project built on Fractal, dedicated to creating an immersive environment on Fractal and developing community and game toolkits for interoperable virtual worlds. It is also the first large-scale application on Fractal developed by a wallet team. On August 8, it announced the completion of seed round financing led jointly by a wallet and a UGC platform vendor. As a project that has clearly received official resource support, the follow-up development of UniWorlds is worth paying attention to.

) BRC20

The BRC20 functionality was activated at block 21000, and the on-chain gas fees have remained high for a long time, which has attracted some attention to Cat20. However, in terms of trading volume and market capitalization, the performance of leading inscription projects is not ideal, with a common phenomenon of startup funds or studios monopolizing the market. Whether any projects can stand out in the future or continue to remain silent still needs to be tested by the market.

![Exploring the New Favorite of BTC: Is Fractal an Ecological Revolution or a Follower?]###https://img-cdn.gateio.im/webp-social/moments-215dc211a973d39eaa4d37697f50b228.webp(

Participation of Different Groups