Fractal Bitcoin is a Layer 1 protocol tailored for expanding the Bitcoin network. Unlike other expansion schemes, Fractal Bitcoin adopts a tree-like recursive expansion structure (BCSP, Blockchain Scaling Protocol), which achieves faster transaction processing by adding layers while maintaining full compatibility with the existing Bitcoin ecosystem.
Fractal Bitcoin's core advantages
- Efficiency: Each block confirmation time is only about 30 seconds, and the transaction processing speed is about 20 times that of the Bitcoin main chain.
- Native compatibility: Based on the Bitcoin core code, it supports existing Bitcoin wallets, tools, and miner networks. The channels will be dynamically adjusted according to the congestion of the main chain. When the transaction volume increases, more channels will be automatically created, and when the transaction volume decreases, unnecessary channels will be closed.
- Consistency: Each layer works in conjunction with the Bitcoin main chain, and all transactions can be traced back to the Bitcoin main chain, ensuring data integrity and security.
In simple terms, Fractal Bitcoin is a forked version based on Bitcoin Core v24.0.1, which can be understood as a small Bitcoin chain with adjusted parameters. Its main differences are in terms of block time, difficulty adjustment mechanism, total token amount (210 million instead of 21 million), initial block reward, halving cycle and activation of OP_CAT.
Investment reminder: For pure crypto investors, these technical details may not be important. What needs to be kept in mind is that the long-term investment value of such forked coins cannot be overestimated. Those who once believed that 1BCH = 1BTC have already left the market.
Fractal Background
According to Rootdata, Fractal Bitcoin was developed by the @unisat_wallet team, and UniSat has previously completed multiple rounds of financing from institutions including Binance and OKX Ventures. In addition, Fractal Bitcoin was jointly launched by the Unisat team, BSF, Uniworlds, and Asset Bridge, and has a partnership with Binance Labs, the Binance incubator. This means that Fractal Bitcoin is closely linked to Binance.
Unisat was once a mainstream wallet in the Bitcoin ecosystem, but it missed the opportunity in the Inscription era. The team seems to be determined to strike again and launch Fractal Bitcoin. This situation is not difficult to understand. After all, investors expect returns, and the team also needs to continue to innovate and act.
Ecosystem development and market feedback
As a project in its early stages, Fractal Bitcoin has brought many wealth opportunities to the market. For example, the first NFT project, the first Pump project, the first pledge agreement, the first DeFi application, and the Meme project on Fractal. All OG participants who enter the market early have the opportunity to obtain higher returns on their investments.
Judging from the current mining data, Fractal Bitcoin has a strong momentum of development, and the GAS fee on the chain has soared due to CAT packaging transactions. At present, Fractal's computing power is close to 300EH/s, which is about half of the computing power of the Bitcoin mainnet.
Behind this enthusiasm are the driving forces of multiple parties.
For example, the participation of mining machine manufacturers and mining pools provides computing power support for the network. $FB can mine simultaneously with Bitcoin dual mining, bringing considerable benefits to large mining pools. At the same time, the project development team can also quickly launch new projects on Fractal by reusing similar codes.
In addition, Fractal also brings new development opportunities for exchanges and decentralized exchanges (DEX), and some exchanges may be reborn through this opportunity. Several projects in the market have announced that they will launch new features and projects on Fractal, such as Satspumpfun, BVM, etc.
In addition, the inscription market has become active again, and CAT transactions have caused GAS fees to rise again. This trend once again shows that in the blockchain field, liquidity and innovation speed are the key to driving market vitality.
The rapid development of Fractal Bitcoin has not only driven the innovation of the main chain project, but also provided new opportunities for upstream and downstream ecosystems such as mining pools, mining machine manufacturers, DEX, and exchanges.
In this rapidly emerging ecosystem, risks and opportunities coexist. Next, the author will take stock of Fractal-related assets, especially those OG projects that entered the ecosystem early to seize potential wealth opportunities.
$FB
The first is Fractal Bitcoin’s token $FB
Currently, the $FB in circulation includes 1 million tokens from the earlier airdrop. Fractal’s white paper mentions that the distribution of $FB is as follows:
- Ecosystem Treasury: 15% of the total supply. Currently, 60,000 tokens have been transferred out, 10,000 tokens per transaction, and distributed to 6 addresses. These addresses correspond to the 6 projects that Fractal officially announced as receiving the Season 0 Grant. Except for one of the addresses, the tokens of the other 5 addresses are not used for the time being, which means that these tokens are actually in a "locked" state and are not involved in market circulation.
- Community incentives: 10% of the total supply, 1 million $FB has been transferred, which is the airdrop part.
- Pre-sale share: 5% of the total supply, with a 7-month lock-up period, currently not released.
- Advisor Share: 5% of total supply, up to 20% can be released each year, currently unused.
- Core Contributor Share: 15% of the total supply, also with a 7-month lock-up period, unused.
- Proof of Work (PoW) mining 50%.
According to Coingecko data, as of press time, $FB is quoted at $28.59. Its circulating market value can be calculated using the following formula:
- Circulating market value = (airdrop + block reward * number of blocks produced) * 28.59 ≈ 38.83 million US dollars
- Fully Diluted Market Value (FDV) = $6 billion
Currently, a large number of projects are trying to issue new tokens on Fractal Bitcoin, many of which require the consumption of $FB, such as inscription projects . If demand rises in the short term and supply is insufficient, prices may rise, and miners' income will also increase, further stimulating computing power growth. At the same time, users who hold tokens may be reluctant to sell, hoping that prices will continue to rise.
Fractal Bitcoin’s control strategy
Overall, Fractal currently presents a "low circulating market value, high market value" control gameplay. The team stimulates the market demand for $FB by continuously launching new assets (such as CAT). This strategy is not much different from the traditional market control model. The key lies in the length of the cycle. Under the current market sentiment, the cycle may be further shortened. If the new assets cannot continue to bring wealth effects, the market will quickly enter the end of the cycle.
Investment and short strategies
Regarding Fractal Bitcoin's $FB, if investors expect to maintain the wealth effect of new assets in the long term, then they may not be suitable for current crypto market investment. As for short$FB, given that its current circulating market value is $38.83 million, there is still a large market space, and blind short is not recommended. You can wait for the market heat to ferment further, observe the wealth effect of new assets, and then consider short opportunities.
However, considering that $FB's FDV is as high as 6 billion US dollars, there is still room for expansion in the future, and long-term short short still has great imagination. The most prudent strategy may be to adopt a "low-multiple fixed short" strategy, that is, do not predict short-term highs, but short short in batches, gradually lay out like fixed investment, and operate based on the expectation of a long-term downward trend.
Price Derivation
After $FB is listed on OKX and Binance, it may experience short-term sharp fluctuations, followed by a period of shocks, during which it will continue to attract short forces. During this process, the price may reach new highs, but may eventually enter a long-term downward trend. However, the above deduction is only a prediction and has no actual reference value.
Cat Protocol
CAT Protocol consists of two main parts: the homogeneous token standard CAT 20 and the non-homogeneous token standard CAT 721. Currently, the CAT 20 standard has been launched in the official documentation. If you delve into the technical documentation of CAT 20, you will find that its token design covers a comprehensive logic from deployment to minting. The following is a summary of the key features of CAT 20:
- Non-uniqueness of token names: Similar to the ERC 20 standard, CAT 20 allows any user to deploy tokens with the same name or symbol, which avoids the token "flavor" competition problem that occurs in BRC 20 and Rune.
- Token management contract: Token minting and transfer are managed by smart contracts. When a user spends UTXO to mint new tokens, a new Minter UTXO is generated. These UTXOs can be used to recursively mint more tokens. Although UTXOs are merged, the number of tokens is retained. Therefore, the rumored situation in the community that CAT assets are burned due to UTXOs containing assets in the minting transaction input may not happen.
Currently, the over-the-counter price of CAT is 2 USDT/piece (5 pieces), but the trading volume is small, which may be due to the fact that it can still be minted or the inconvenience of transfer. According to the CAT minting cost table made by the community, the current Fractal network fee rate is between 1800-2000 Satoshis, and the cost of minting a piece of CAT is about 2 USDT. If CAT is minted when the fee is less than 200 Satoshis, the profit may be more than 10 times.
PIZZA
Pizza is an inscription project launched by Unisat, which airdropped to eligible active addresses during the Bitcoin Pizza Festival on May 22, 2023.
$PIZZA is a meme coin officially airdropped by Unisat. Its uniqueness lies in its dual attributes: when it is a meme coin, it behaves as a typical meme coin, and when Unisat participates in more financial activities, it exhibits the characteristics of a VC coin.
From the perspective of meme coins:
- High-quality meme coins can usually occupy 1-2% of the public chain’s market value.
- Some top meme coins, such as SHIB on Ethereum and WIF on Solana, can even reach 5% of their market capitalization.
- In the Bitcoin network, meme coins like Pizza have unique properties that no other coin can match.
As the popularity of Fractal Bitcoin continues to rise, $PIZZA is expected to usher in new development opportunities. Currently, $PIZZA is only listed on exchanges such as BingX and Gate, and has not yet been listed on more high-liquidity exchanges such as OKX, Bybit and Binance, so it is worth paying attention to its future performance and potential opportunities.
@UniWorlds_io: First app on Fractal
UniWorlds provides a comprehensive suite of tools designed to simplify the development and management of mobile games and gamification environments. The platform includes:
- UniWorlds Studio / Game Engine: A comprehensive game engine and studio.
- Module Library: A modular library that provides a variety of development components.
- Fragment / Space: Fragmentation / space management tool.
- Uniworlds Marketplace: A marketplace for trading and acquiring resources.
Goals and Vision
The main goal of UniWorlds is to migrate real-world interactions and application scenarios to the Bitcoin network. For Web2 developers, UniWorlds provides a bridge to the Web3 world, avoiding the problem of a steep learning curve. For the Web3 community, the platform's game creation tools can effectively improve the practicality of tokens and attract more users to participate.
Technical features
UniWorlds uses fractal Bitcoin technology, which may refer to the layering or sharding technology implemented on the Bitcoin network to improve the scalability and functionality of the network.
The team is headquartered in Singapore and focuses on the development of the Bitcoin ecosystem, while actively deploying multiple Web3 fields including second-layer solutions (L2), DeFi, GameFi, AI and Metaverse.
Community and Ecology
UniWorlds has created community-driven game worlds in the Fractal ecosystem, fully demonstrating the scalability of Fractal. Recently, UniWorlds launched its first application on Fractal Bitcoin and airdropped a large number of key NFTs to users holding uni domain names, achieving triple returns.
@honzomomo: The first NFT on Fractal
Project Positioning
@honzomomo is the first Ordinals NFT series to be issued on the Fractal platform. This shows that the project uses the Ordinals technology of the Bitcoin blockchain for the creation and trading of NFTs. @honzomomo is committed to becoming an important part of the Bitcoin ecosystem, especially on the Fractal platform. Through Ordinals NFT, the project hopes to create value and culture in the decentralized environment of Bitcoin.
Activities and Development
The project has launched multiple collaborations and giveaways to expand its influence and user base. @honzomomo actively responds to community feedback, showing its attention to community needs.
Community Response
@honzomomo has accumulated a certain influence in the Bitcoin and Fractal communities, and has stimulated the interest of other projects through innovative NFT issuance. The project attaches importance to community interaction, actively publishes information on cooperation with other organizations, and warns community members to beware of fake giveaways. This reflects its concern for community safety.
@opdotfun pump op-fun on Fractal
@opdotfun aims to activate the approximately $1.2 trillion of liquidity in the Bitcoin network by developing decentralized exchanges (DEX) and other financial tools. The project is similar to smart contracts in the Ethereum ecosystem, but focuses on Bitcoin's Layer 1. The project utilizes Bitcoin's OP_NET ecosystem and may include Fractal Bitcoin or similar technologies that allow more complex functions to be built on the Bitcoin main chain without changing the core protocol.
By integrating @opnetbtc, @opdotfun hopes to promote DeFi development on Bitcoin's Layer 1, similar to the DeFi ecosystem on Ethereum. This includes the development of financial tools such as exchanges and liquidity pools.
Token Standards
The project adopted the #OP20 standard, which may refer to a new type of token or smart contract standard introduced on the Bitcoin network that aims to provide more functionality than traditional Bitcoin scripts.
Community and Culture
@opdotfun emphasizes community culture and participation, and attaches importance to the importance of meme culture in the crypto market. This shows that the project not only focuses on technology, but also on culture and community building.
Conclusion
The continued popularity of Fractal Bitcoin and how long it can last depends on the following key factors:
- Project promotion ability: Can @unisat_wallet effectively expand its influence within the existing small-scale attention and attract more international users to participate, rather than just being limited to the domestic market?
- Project profitability: Whether it is an inscription, meme token or NFT (such as the big goose), whether these projects can significantly improve the money-making effect and thus attract more attention and funds from retail investors.
- Miners’ behavior: Miners are already beginning to show FOMO (fear of missing out). The key is whether this sentiment can be sustained and prevent them from turning the mined assets into steady selling pressure.
Investors need to be cautious, as only when the market tide recedes can we see who is swimming naked. Although it is still unclear whether FB can become a long-term successful project, at this stage, it has successfully activated the long-dormant Altcoin market, bringing it short-term hot spots and airdrop profit effects. The airdrop of $FB did turn from initial negative feedback to positive reviews as the price rose (one account earned nearly $400, which naturally brought positive reviews). In addition, this has also increased the enthusiasm of relevant practitioners and retail investors to participate, and miners have also been attracted to a more complex game situation, which is more variable than the points plate on Ethereum and Solana.
