Fractal Bitcoin is a Layer 1 protocol tailored to scale the Bitcoin network. Unlike other scaling schemes, Fractal Bitcoin uses a tree-like recursive scaling structure (BCSP) to achieve faster transaction processing by adding layers while maintaining full compatibility with Bitcoin's existing ecosystem.
Fractal Bitcoin 的核心优势
- Efficiency: Each block confirms only takes about 30 seconds, and the transaction processing speed is about 20 times faster than the Bitcoin main chain.
- Natively compatible: Based on the Bitcoin Core code, it supports existing Bitcoin wallets, tools, and miner networks. Channels dynamically adjust based on the congestion of the main chain, automatically creating more channels when the volume increases, and closing unnecessary channels when the volume drops.
- Consistency: Each layer works in tandem with the Bitcoin main chain, and all transactions are traceable 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. The main differences are the block time, difficulty adjustment mechanism, total number of tokens (210 million instead of 21 million), initial block reward, halving cycle, and activation of OP_CAT.
Investment Alert: For pure crypto investors, these technical details may not be important. It is important to be sober that the long-term investment value of such forked coins cannot be overestimated. People who once believed in 1BCH = 1BTC are now long gone.
Fractal background
According to Rootdata, Fractal Bitcoin was developed by the @unisat_wallet team, and UniSat has previously closed multiple rounds of funding including institutions such as Binance and OKX Ventures. In addition, Fractal Bitcoin is a joint venture between the Unisat team, BSF, Uniworlds, and Asset Bridge, as well as a partnership with Binance incubator BinanceLabs. This means that Fractal Bitcoin is very closely tied to Binance.
Unisat used to be the mainstream wallet in the Bitcoin ecosystem, but after missing out on the opportunity in the Age of Inscriptions, the team seems determined to make a comeback and launch Fractal Bitcoin. It's not hard to understand this, after all, investors expect returns, and teams need to constantly innovate and act.
Ecological development and market feedback
As an early-stage project, Fractal Bitcoin brings a lot of wealth opportunities to the market. For example, the first NFT project, the first Pump project, the first staking protocol, the first DeFi application, and the Meme project on Fratal, all OG participants who enter the market early will have the opportunity to obtain a higher return on investment.
Judging by the current mining data, Fractal Bitcoin is gaining momentum, with on-chain GAS fees soaring due to CAT packaging transactions. Currently, Fractal's hashrate is close to 300EH/s, which is about half of the hashrate of the Bitcoin mainnet.
Behind this popularity is the impetus of many forces.
For example, the participation of mining rig manufacturers and mining pools provides computing power support for the network, $FB can be synchronously mined during Bitcoin dual mining, bringing considerable benefits to large mining pools. At the same time, the project development team was able to quickly launch new projects on Fractal through the reuse of similar code.
In addition, Fractal also brings new opportunities for exchanges and decentralized exchanges (DEXs) to grow, and some exchanges may be able to take advantage of this opportunity to rejuvenate themselves. There are already several projects in the market that have announced new features and projects on Fractal, such as Satspumpfun, BVM, and more.
Not only that, but the inscription market has also been re-energized, with CAT trading causing GAS fees to rise again. This trend shows once again that in the blockchain space, liquidity and speed of innovation are key to driving market vitality.
The fiery development of Fractal Bitcoin has not only driven the innovation of the main chain projects, but also provided new opportunities for the upstream and downstream ecosystems such as mining pools, mining machine manufacturers, DEXs, and exchanges.
In this fast-rising ecosystem, where risks and opportunities coexist, I will take stock of the assets related to Fractal, especially those OG projects that entered the early stage of the ecosystem, to capture potential wealth opportunities.
$FB
首先就是Fractal Bitcoin的代币$FB
Currently, the $FB in circulation includes the 1 million that were airdropped earlier. Fractal's white paper mentions that the distribution of $FB is as follows:
- Ecosystem Vault: 15% of the total supply, 60,000 have been transferred out so far, 10,000 each, spread across 6 addresses. These addresses correspond to the six projects that have been awarded Season 0 Grants by Fratal. With the exception of one of the addresses, the tokens of the other 5 addresses are temporarily unused, meaning that these tokens are currently effectively "locked" and do not participate in the market.
- Community Incentive: 10% of the total supply, 1 million $FB have been transferred, that is, the airdrop part.
- Presale share: 5% of the total supply, with a 7-month lock-up period, currently unreleased.
- Advisor Share: 5% of the total supply, with up to 20% released annually and currently unused.
- Core Contributor Share: 15% of the total supply, also with a 7-month lock-up period, unspent.
- Proof-of-Work (PoW) mining 50%.
According to CoinGecko data, $FB was trading at $28.59 at press time. Its float market value can be calculated using the following formula:
- Market Cap in Circulation = (Airdrop + Block Reward * Number of Blocks Out) * $28.59 ≈ $38.83 million
- Fully Diluted Market Cap (FDV) = $6 Billion
Currently, there are a large number of projects that are experimenting with issuing new tokens on Fractal Bitcoin, and many of them require $FB, such as inscription projects. If the demand for $FB rises in the short term and the supply is insufficient, it may push up the price, and the miners' income will also increase, further stimulating the growth of computing power. At the same time, users who hold tokens may be reluctant to sell, expecting the price to continue to rise.
Fractal Bitcoin 的控盘策略
On the whole, Fractal currently presents a "low circulating market capitalization, high market capitalization" control play. The team stimulates demand for $FB by constantly launching new assets, such as CAT. This strategy is not much different from the traditional market control model, and the key is the length of the cycle. With the current market sentiment, the cycle is likely to shorten further. If new assets do not provide a sustained wealth effect, the market will quickly enter the end of the cycle.
Investment & Short Selling Strategies
For Fractal Bitcoin's $FB, investors may not be a good fit for the current crypto market investment if they have the expectation of maintaining the wealth effect of the new asset for the long term. As for shorting $FB, given that its current circulating market capitalization is $38.83 million, the market space is still large, and it is not recommended to blindly short. You can wait for the market heat to further ferment, observe the wealth effect of new assets, and then consider short opportunities.
However, considering that $FB's FDV is as high as $6 billion, there is still room for expansion in the future, and there is still a lot of imagination for long-term shorting. Perhaps the most prudent strategy is to adopt a "low-magnification short" strategy, that is, not to predict short-term highs, but to operate based on the expectation of a long-term downtrend by shorting in batches, gradually laying out like regular investment.
Price deduction
After listing OKX and Binance on $FB, it is likely to experience short-term sharp volatility, followed by a period of volatility that continues to attract bears. In the process, the price may reach new highs, but may eventually enter a long-term downtrend. However, the above deductions are only predictions and have no actual reference value.
Cat Protocol
CAT Protocol consists of two main parts: the fungible token standard CAT 20 and the non-fungible token standard CAT 721. Currently, the CAT 20 standard has been introduced in the official documentation. If you dig deeper into the technical documentation of CAT 20, you will find that its token design covers a comprehensive logic from deployment to minting, and here 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 problem of token "pretty number" competition as seen in BRC 20 and Rune.
- Token Management Contract: Token minting and transfer are managed by a smart contract. When a user spends UTXO to mint a new token, a new Minter UTXO is generated. These UTXOs can be used to recursively mint more tokens. Although UTXOs will merge, the number of tokens will be preserved. As a result, it is unlikely that the CAT assets burned in the community due to UTXOs containing assets in the minting transaction input may not happen.
Currently, the OTC trading price of CAT is 2 USDT per conlot (5 lots), but the trading volume is small, which may be due to the inconvenience of still being minted or transferred. According to the CAT minting cost table made by the community, the current rate of the Fractal network is between 1800-2000 Satoshis, and the cost of minting one CAT is about 2 USDT. If CAT is minted when the fee is less than 200 Satoshis, the gain can be more than 10 times.
PIZZA
Pizza is an inscription project launched by Unisat that airdropped to eligible active addresses during the Bitcoin Pizza Festival on May 22, 2023.
$PIZZA is an official airdrop meme coin by Unisat, and 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 shows the characteristics of a VC coin.
From the point of view of meme coins:
- High-quality meme coins are usually able to occupy 1-2% of the market value of the public chain.
- Some of the top meme coins, such as SHIB on Ethereum and WIF on Solana, can even reach 5% of their market cap.
- In the Bitcoin network, meme coins like Pizza are so attributed that no other coin can match them.
As the popularity of Fractal Bitcoin continues to grow, $PIZZA is poised for new growth opportunities. Currently, $PIZZA is only listed on exchanges such as BingX and Gate, and is yet to list on more highly liquid exchanges such as OKX, Bybit, and Binance, so it is worth keeping an eye on its future performance and potential opportunities.
@UniWorlds_io: The first app on Fractal
UniWorlds offers a comprehensive suite of tools designed to simplify the development and management of mobile games and gamified environments. The platform includes:
- UniWorlds Studio / Game Engine：一个全面的游戏引擎和工作室。
- Module Library：模块化库，提供多种开发组件。
- Fragment / Space：碎片化/空间管理工具。
- Uniworlds Marketplace: A marketplace for trading and acquiring resources.
Goals & Vision
The primary goal of UniWorlds is to migrate real-world interactions and use cases to the Bitcoin network. For Web2 developers, UniWorlds provides a bridge into the Web3 world, avoiding the problem of a steep learning curve. For the Web3 community, the platform's game creation tools are a great way to increase the utility of the token 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, which aims to improve the scalability and functionality of the network.
Headquartered in Singapore, the team focuses on the development of the Bitcoin ecosystem, while actively deploying multiple Web3 areas including layer 2 solutions (L2), DeFi, GameFi, AI and metaverse.
Community & Ecology
UniWorlds has created community-driven game worlds within the Fractal ecosystem, showcasing the scalability of Fractal. Recently, UniWorlds launched its first app on Fractal Bitcoin and airdropped a large number of key NFTs for users who hold uni domains, achieving a triple return.
@honzomomo: The first NFT on Fractal
Project positioning
@honzomomo is the first Ordinals NFT collection to be issued on the Fractal platform. This suggests that the project leverages the Bitcoin blockchain's Ordinals technology for the creation and trading of NFTs. @honzomomo strives to be an important part of the Bitcoin ecosystem, specifically on the Fractal platform. Through Ordinals NFTs, the project hopes to create value and culture in Bitcoin's decentralized environment.
Activities and developments
The project has launched several collaborations and giveaways to expand its reach and user base. @honzomomo Respond positively to community feedback and demonstrate a focus on community needs.
Community response
@honzomomo has amassed some influence in the Bitcoin and Fractal communities, sparking interest from other projects through innovative NFT offerings. The project values community interaction, actively publicizes information about partnerships with other organizations, and alerts community members to fake giveaways. This reflects its concern for the safety of the community.
@opdotfun Fractal上的 pump op-fun
@opdotfun aims to activate approximately $1.2 trillion in liquidity in the Bitcoin network through the development of decentralized exchanges (DEXs) and other financial instruments. The project is similar to smart contracts in the Ethereum ecosystem, but focuses on Bitcoin's Layer 1. Projects leverage Bitcoin's OP_NET ecosystem and may include Fractal Bitcoin or similar technologies that allow more complex functionality to be built on Bitcoin's 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 instruments such as exchanges, liquidity pools, etc.
Token Standards
The project uses 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 & Culture
@opdotfun emphasizes community culture and engagement, valuing the importance of meme culture in the crypto market. This shows that the project focuses not only on technology, but also on culture and community building.
epilogue
The continued popularity of Fractal Bitcoin and how long it lasts depends on a few key factors:
- The project's ability to promote: @unisat_wallet whether it can effectively expand the impact of the existing small focus and attract more international users to participate, not just in the domestic market.
- Project monetization effect: Whether it is inscriptions, meme tokens, or NFTs (such as fractal geese, etc.), whether these projects can significantly improve the monetization effect, thereby attracting the attention and funds of more retail investors.
- Miners' behavior: Miners are now starting to exhibit FOMO (fear of missing out) sentiment, and the key is whether this sentiment can be sustained to prevent them from turning their mined assets into stable selling pressure.
Investors need to be cautious and only see who is swimming naked when the tide goes out. Although the jury is still out on whether FB will be 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. $FB's airdrop did go from initial negative feedback to positive reviews as the price went up (one account earned close to $400, which naturally brought good reviews). In addition, this has increased the enthusiasm of relevant practitioners and retail investors, and miners have been attracted to a more complex gambling situation, which is more variable than the points board on Ethereum and Solana.