What is Fractal Bitcoin: scaling the Bitcoin network

Have you ever considered how Bitcoin could scale to support millions of transactions without compromising on its core strengths? Fractal Bitcoin, supported by Unisat, could provide the answer, as the technology presents a fresh take on scaling.

Unlike other solutions, Fractal Bitcoin doesn’t try to reinvent the wheel. It uses the same Bitcoin core code — the very foundation of Bitcoin itself — to offer a way for the network to grow without limits.

TL;DR

• Fractal Bitcoin scales the Bitcoin network using its core code, keeping the network secure and decentralized.

• It achieves 30-second transaction times, improving speed without compromising Bitcoin’s core principles.

• The recursive structure allows infinite scalability, ensuring consistent security across all layers.

• Fractal Bitcoin supports smart contracts and is user-friendly for developers, miners, and community members.

• Fractal encourages community involvement through governance tokens and development participation.

What’s Bitcoin's core code and main chain?

Before we jump into Fractal, it's important to understand Bitcoin's main chain and core code, which Fractal works with.

Bitcoin’s core code, primarily written in C++, is the basic software supporting the entire Bitcoin network. This code is responsible for maintaining the blockchain, a decentralized and immutable ledger that records every transaction ever made on the network. By managing this blockchain, the code makes sure that all nodes (the computers running the Bitcoin software) remain synchronized and agree on the network’s current state.

The Bitcoin main chain is the backbone of the Bitcoin network, where all transactions are recorded and validated. Bitcoin’s main chain was launched in 2009 by a person or group called Satoshi Nakamoto. It’s a ledger that no one controls.

This ledger comprises blocks — bundles of transactions that are added to the chain in a linear, chronological order. These blocks were linked together using cryptographic hashes, making sure that any attempt to alter the chain would be immediately detected.

Security and consensus

The Bitcoin main chain is secured through a process called Proof of Work (PoW). In PoW, miners compete to solve complex math problems. The first one to solve it gets to add a new block to the chain and is given new Bitcoin as a reward. This process secures the network and ensures that no single entity can control the chain, maintaining its decentralized nature.

To keep the network consistent, Bitcoin uses a system called consensus. Most nodes (computers that run Bitcoin software) must agree on whether each new block is valid. This consensus prevents double-spending and makes sure the ledger remains accurate and trustworthy.

Immutability and transparency

Bitcoin's main chain is immutable. Once a transaction is recorded on the blockchain, it can’t be altered or deleted. This provides a permanent and transparent record of all transactions, which is why Bitcoin is often called a “trustless” system. Trust is placed in the code and the network, rather than in any central authority.

What makes Fractal Bitcoin a unique scaling solution?

Fractal Bitcoin isn’t another quick fix slapped onto Bitcoin. It gives Bitcoin room to breathe without compromising the network's core strengths and functions.

Some scaling solutions can feel like they’re tacked on, like adding an extension to your house that doesn’t match the original architecture. Instead, Fractal Bitcoin is like expanding the original blueprint of Bitcoin itself, staying true to its foundation while making it ready to handle whatever the future brings.

Fractal Bitcoin’s recursive nature is intriguing. Recursive structures are self-similar, meaning that each new layer mirrors the structure of the layer below it. This allows the network to scale infinitely, while each layer retains the original Bitcoin chain’s security, traceability, and consensus features.

This kind of Bitcoin scaling makes sure that every new layer remains consistent with Bitcoin’s original security features, so you’re not sacrificing safety for speed.

These layers don’t just make protocols run faster — they add scalability. Transactions that usually take minutes on Bitcoin’s blockchain can zip through in about 30 seconds on Fractal, all while working perfectly with existing Bitcoin wallets and tools.

Since Fractal Bitcoin is like an extension to the Bitcoin blockchain, the project has experimented with different features during the testnet phase. One example is OP_CAT, which expands Bitcoin’s scripting capabilities and aims to make it easier to build complex smart contracts.

In a poll on X, the community wanted OP_CAT to be included in the public testnet. From the feedback from the community, it sounds like they'd also like OP_CAT to be a part of the mainnet. Fractal will also support runes, ordinals, and BRC-20.

What are Fractal Bitcoin's features?

Here are the features that make Fractal Bitcoin stand out from other blockchain scaling solutions:

Native scaling

Unlike other solutions that attempt to add extra features, Fractal Bitcoin scales directly within the Bitcoin Core codebase. This means it doesn’t rely on external systems or separate chains, ensuring complete compatibility with the existing Bitcoin infrastructure.

Fast transactions

One of the standout features is speed. Fractal Bitcoin achieves block confirmation times of just 30 seconds, which is faster than Bitcoin’s traditional 10-minute average. This increase in speed doesn’t come at the cost of security or decentralization, which are core to Bitcoin’s value.

Dynamic scaling

Fractal Bitcoin isn’t just fast — it’s smart. It acts as a dynamic blockspace load balancer, automatically adjusting the number of layers based on network demand. This preserves the network's efficiency even during peak times, reducing congestion and improving the overall user experience.

Consistency across layers

Another feature of Fractal Bitcoin is its ability to maintain onchain consensus across all layers. Every transaction can be traced back to Bitcoin’s main chain, maintaining security and preventing the risks associated with forks or shards.

Ease of use

Fractal Bitcoin is designed with the different types of community members in mind. It simplifies asset transfers between layers, eliminating the need for complex relays. This ease of use makes the system more accessible, even for those who might not be blockchain experts.

How does Fractal Bitcoin maintain its security with Bitcoin’s main chain?

Fractal Bitcoin prioritizes security by making sure that each of its scalable layers is a direct extension of the Bitcoin main chain. In other words, instead of creating separate offshoots or fragments, each layer of Fractal is tightly combined with Bitcoin’s existing infrastructure.

Every transaction within Fractal’s layers can be traced back to the original Bitcoin blockchain, like following a paper trail to its source. This transparency and traceability are crucial for maintaining blockchain integrity.

By avoiding the creation of forks or shards — common in other scaling solutions — Fractal maintains the security and reliability of the decentralized network.One of the standout aspects of Fractal Bitcoin’s security is its use of native scaling. Since Fractal uses Bitcoin's core code, it inherits Bitcoin’s well-established security mechanisms. This approach protects against potential vulnerabilities and keeps the entire network secure as it scales.

Fractal Bitcoin not only scales the network but does so in a way that improves, rather than compromises, its security. By maintaining a direct link to the Bitcoin main chain, Fractal ensures that all layers remain consistent, secure, and fully traceable, preserving the core principles of Bitcoin.

Who is Fractal Bitcoin for?

Whether you’re a developer, miner, or community member, Fractal Bitcoin brings various advantages.

Developers

Opportunity for innovation

Fractal Bitcoin allows developers to build decentralized applications (DApps) and experiment with new protocols on its scalable framework.

Getting started

You can contribute to Fractal’s development by accessing resources on the project's GitHub page and by engaging with the community. This involvement allows you to influence how Fractal evolves and expands.

Miners

Cadence mining

Fractal introduces a unique mining mechanism called Cadence Mining. Miners can simultaneously mine Bitcoin and Fractal blocks through this method, improving the hash rate and potentially boosting their earnings.

Flexible mining

Switching between Bitcoin and Fractal mining offers flexibility to adapt to market conditions. Miners can maximize efficiency and profitability with this approach. Detailed information on starting with Fractal mining can be found on the mining page.

Community members

Enhanced experience

As a community member, you benefit from faster block confirmations and reduced congestion thanks to Fractal’s scaling features. This means a smoother and more efficient experience on the Bitcoin network.

Engagement

To participate in its testnet, you can contribute to the governance process by holding FB tokens after the mainnet launches, and also explore DApps.

What are Fractal Bitcoin tokenomics?

The total supply of Fractal Bitcoin (FB) tokens for the network is 210 million. The distribution of these tokens is planned to maintain the network’s security, growth, and stability. Here’s the breakdown of the tokenomics:

Proof of Work mining (50%)

Half of the tokens, or 105 million, are allocated to PoW mining. This allocation is essential for maintaining network security and guaranteeing reliable block production, similar to Bitcoin’s operation.

Ecosystem treasury (15%)

Of the total supply, 15%, or 31.5 million tokens, are reserved for the ecosystem treasury. This fund helps the Fractal ecosystem grow. It does this by paying for projects that fundamentally improve the core system.

Community grants (10%)

Of the total supply of tokens, 10%, or 21 million, are allocated to community grants. These grants will foster partnerships and support liquidity programs and other community-driven initiatives to improve network engagement.

Core contributors (15%)

Of the total token supply, 15%, or 31.5 million tokens, are allocated to core contributors who build and maintain the Fractal network’s software. This allocation ensures sufficient resources are available for ongoing development and network stability.

Pre-sale (5%)

Of the total token supply, 5%, or 10.5 million tokens, were allocated for the pre-sale to early investors. These tokens are locked up for six months and will be gradually released over six months to encourage a long-term commitment from early supporters.

Advisor (5%)

Of the total token supply, 5%, or 10.5 million tokens, are reserved for advisors who provide strategic guidance and support for the network’s development.

The theory behind this breakdown

• Security: A significant portion (50%) is dedicated to PoW mining, ensuring the network remains secure.

• Growth: Funds from the ecosystem treasury (15%) and community grants (10%) are allocated to foster growth and development within the ecosystem.

• Stability: Lock-up periods for pre-sale and a carefully planned distribution help maintain the network’s stability over time.

What's next for Fractal Bitcoin?

You still have time to participate in the testnet. After you get your tokens, you can join the testnet by casting BRC-20, inscriptions, and exploring different projects to earn points. It’s important to flag that the assets on the testnet hold no value, but the Unisats points are valid. Fractal Bitcoin’s mainnet is set to launch on September 9, 2024.

On the governance side, Fractal will introduce a voting system through its native token, FB. This will enable transparent decision-making for transaction fees, node access, and ecosystem management, making the platform more community-driven.

As part of the roadmap, the activation of BRC-20 tokens on the mainnet will mirror what’s been tested on the testnet, adding a new layer of functionality to the platform.

PizzaSwap, a decentralized exchange for swapping assets, will be available on the mainnet soon. The platform will help make it easier for you to trade your assets.

Fractal bridges are also in development, enabling smooth asset transfers between Bitcoin and Fractal, adding another layer of utility and interoperability.

Meanwhile, Fractal is collaborating with wallet providers to support its growing network of protocols and DApps. For those who may not have mining equipment, BitTera has announced NFTs that can mine Fractal’s native token FB.

The final word

Fractal introduces a recursive structure, allowing infinite scaling while maintaining compatibility with Bitcoin’s existing infrastructure.

With 30-second transaction times, dynamic block management, and smart contract support, Fractal Bitcoin improves speed and scalability without compromising Bitcoin’s core principles. The project also involves the community through governance tokens and participation in development. This makes it a forward-thinking solution that stays true to Bitcoin’s foundation.