What Is Fractal Bitcoin? Here's What You Need to Know

The “building on Bitcoin” movement has never been stronger, with a wave of new protocols and applications being built on top of Bitcoin to offer new use cases and enhance its scalability. 

Fractal Bitcoin is one of the latest innovations in this space, using Bitcoin’s core code as its building block to play its part in scaling Bitcoin and providing new utility for the network. 

Read on to learn what Fractal Bitcoin is, how it works, and what it brings to the broader Bitcoin ecosystem.

What Is Fractal Bitcoin?

Fractal Bitcoin is a Bitcoin sidechain launched in 2024 that uses Bitcoin’s core code to recursively scale it through multiple layers to ease network congestion, reduce the transaction fees users pay, and create capacity to support other applications.   

It achieves all these without compromising Bitcoin’s core structure, acting as a scaling solution built on top of Bitcoin. 

How Does Fractal Bitcoin Work?

Fractal Bitcoin uses an innovative design known as recursive layering that is built with Bitcoin’s core code. This design can have as many layers on top of the Bitcoin protocol as there is need for capacity to process transactions or run applications. 

Although each layer is independent and can expand indefinitely, they are all interconnected and linked to the main Bitcoin blockchain. 

Transactions on the Fractal Bitcoin layers take about 30 seconds to process, which is fast compared to how long it takes on Bitcoin’s base layer, which is often minutes.  

Fractal Bitcoin also utilizes a mining model called Cadence Mining. Cadence Mining combines traditional Proof-of-Work (PoW) with merged mining, allowing miners to simultaneously secure both Fractal Bitcoin and Bitcoin networks using the SHA-256 algorithm. 

Fractal Bitcoin enhances scalability through recursive layering, enabling significant transaction capacity increases while leveraging Bitcoin’s hash power for enhanced security. This system aims to improve network efficiency and stability by creating a predictable mining schedule, reducing hash rate fluctuations, and optimizing block confirmation times.

The Fractal Bitcoin (FB) token is the native token for the Fractal protocol and is used to pay transaction fees. The token plays a central role in Cadence Mining by serving as the native reward for miners participating in Fractal Bitcoin’s ecosystem. 

Through merged mining, miners can simultaneously earn FB and BTC without additional computational resources. The token incentivizes network security and scalability while facilitating transaction fees and supporting Fractal Bitcoin’s broader utility as a sidechain built on Bitcoin.

The FB token has a total supply of 210 million tokens, with 50% (105 million tokens) allocated as block rewards for miners.   

Key Features of Fractal Bitcoin

Now, let’s take a look at the key technological features that make up Fractal Bitcoin.

Recursive Layers

Fractal Bitcoin uses a recursive layers structure to scale the Bitcoin network. Each layer in the structure has a transaction capacity that is larger than that of Bitcoin’s base layer. That means the capacity of Bitcoin can be scaled infinitely.

Faster Block Confirmation Times

Fractal Bitcoin has a 30-second or less block time confirmation, which is significantly faster than Bitcoin’s 10-minute block confirmation time. Fractal Bitcoin’s faster block confirmation time makes it great for decentralized finance (DeFi) protocols and other applications that need real-time settlements. 

Support for Smart Contracts 

Fractal Bitcoin supports smart contract functionality through the use of the OP_CAT opcode. This feature is not entirely new. It was part of the initial Bitcoin design but was dropped in 2010. 

By having the OP_CAT opcode as part of its core protocol, Fractal Bitcoin can execute complex transactions, allowing for the development of decentralized applications (dApps) and token creation on the Bitcoin network. 

Fractal Bitcoin Ecosystem: Use Cases & Applications

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As it is in its early days, we are yet to see Fractal Bitcoin’s full potential. With that being said, below are some of the ways the protocol is likely to be applied going forward.

Decentralized Finance (DeFi)

Fractal Bitcoin can support DeFi applications and stablecoins that are native to Bitcoin and Bitcoin L2 platforms. The Bitcoin scaling solution also supports advanced Bitcoin DeFi protocols thanks to the reintroduction of the OP_CAT opcode, which makes smart contracts on Bitcoin possible.  

Non-Fungible Tokens (NFTs)

Fractal supports Ordinals and other similar protocols. This means that users can easily inscribe, mint, and trade Bitcoin NFTs. Fractal Jasper NFT is a good example of an NFT project on the Fractal Bitcoin. It has a collection of 3333 unique NFTs. 

Cross-Chain Interoperability

Fractal Bitcoin supports cross-chain interoperability, allowing different blockchains to communicate, pass transactions, and share data. In particular, Fractalink is a decentralized bridge protocol that supports seamless cross-chain interactions between Fractal Bitcoin and the Ethereum blockchain. 

Benefits of Building on Fractal Bitcoin

Fractal Bitcoin offers developers tools and an environment to build different types of decentralized applications (dApps).  

dApps built using Fractal Bitcoin seamlessly integrate with the existing Bitcoin ecosystem. In particular, they are compatible with Bitcoin standards, such as BRC-20 and Runes, and other protocols like Ordinals. 

It also uses existing infrastructure such as Bitcoin wallet addresses and applications. In essence, Fractal Bitcoin has a plug-and-play design that fits in within the larger Bitcoin landscape. 

Final Word

Fractal Bitcoin has set itself apart from other Bitcoin scaling solutions by using the existing core code to scale Bitcoin. By adding recursive layering, OP_CAT, and faster block times, Fractal Bitcoin expands Bitcoin’s capability while preserving its security and decentralized nature.

Fractal Bitcoin is still in its early days, so time will tell what impact it will have on the broader Bitcoin ecosystem, but it’s arguably an exciting new Bitcoin layer to follow. 

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FAQs

How do I get Fractal Bitcoin?

You can get Fractal’s native token, FB, on an exchange like Gate.io. Besides buying, you can also participate in merged mining for Fractal Bitcoin, including on pools accessible through exchanges such as Binance. However, you should conduct your own research or consult an expert before making any investment decisions.  

What is Fractal Bitcoin mining?

Fractal Bitcoin mining employs the cadence mining mechanism, which enables the mining of both BTC and FB tokens simultaneously without using additional computational resources or investing in new mining hardware. This is known as merge mining.

What algorithm does Fractal Bitcoin mining use?

Fractal Bitcoin mining uses the SHA-256 mining algorithm, the same mining algorithm used by the Bitcoin base layer. This makes Fractal Bitcoin compatible with Bitcoin, allowing miners to secure both the Bitcoin and Fractal Bitcoin networks. 

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