Welcome to the Fractal World

Last updated: October 17, 2024

Fractal’s Vision: Scaling Bitcoin as a recursive system

Fractal emerges as a groundbreaking solution to one of Bitcoin's most persistent challenges: scalability. As the demand for Bitcoin transactions and applications grows, Fractal offers a way to expand Bitcoin's capabilities without compromising its core principles.

Fractal is a system designed to enable the scaling of Bitcoin in the past, present, and future. It recognizes the historical debates and implementations surrounding Bitcoin scaling but takes a fresh approach tailored to the user needs of today.

Fractal started as a way to ease network congestion for Bitcoin.

The motivation behind Fractal stemmed from the issues with Bitcoin mainnet congestion, particularly highlighted during the rise of Ordinals, BRC-20, and Runes in 2023 - 2024.

1. This congestion posed an existential threat to services running on Bitcoin, as repeated congestion could undermine confidence in the Bitcoin mainnet. Without a reliable solution, users might lose faith in Bitcoin’s scalability.

2. Fractal’s core contributor team explored various alternatives to address this issue, but none were satisfactory, until Fractal as a concept was developed — being philosophically aligned with Bitcoin, while also simple to explain and implement.

3. The name Fractal Bitcoin reflects its recursive nature, inspired by the mathematical concept where a pattern repeats infinitely on different scales, symbolizing Bitcoin's ability to scale through recursive extensions.

Fractal published its technical litepaper in January 2024. Following that, the mainnet was planned for September 2024, and was indeed released on September 9, 2024.

Fractal acknowledges that many Bitcoin users want to do more with their holdings. They're looking for ways to be more active participants in the ecosystem, whether through new protocols like Ordinals, BRC20s, Runes, or the Fractal-enabled CAT20. Fractal supports these native protocols, allowing users to innovate and experiment within a familiar framework under the Bitcoin umbrella.

What sets Fractal apart is its seamless integration with existing Bitcoin infrastructure. Users can interact with Fractal using the same address format as their Bitcoin wallets, eliminating the need for new addresses or complex conversions. This user-friendly approach has led to rapid adoption, with over 900,000 active holders across various addresses on Fractal within just a month of its mainnet launch.

Fractal is a pragmatic way to extend Bitcoin into a system.

Fractal’s mainnet is a meticulously designed virtualization of the Bitcoin core code. The careful balance of parameters maintain the compatibility with Bitcoin, while enabling scale.

Fractal’s block time is 30 seconds, 20x faster that Bitcoin’s. However, Fractal's approach to scaling isn't just about increasing transaction throughput. It's about creating a playground for innovation, where developers and users can push the boundaries of what's possible with Bitcoin. From decentralized exchanges to stablecoins and even advanced cryptographic implementations, Fractal is becoming a hotbed of Bitcoin-native innovation. Additionally, faster block confirmations drastically reduces wait times for transactions, offering a significantly improved user experience, particularly for trading and applications that require quicker confirmations.

Fractal was designed to solve Bitcoin's problems using Bitcoin itself, without introducing new variables or technologies that would fundamentally change its nature (unlike solutions based on other blockchain technologies like Solana or Ethereum). Why this is important? This is because, if you extend Bitcoin using some other modern blockchain technology, then it’s not actually Bitcoin-based anymore — and loses the advantages of Bitcoin, including the efficiency, parallelism, compatibility, and stability of the model.

Hence, Fractal aims to solve the scaling problem in a pragmatic way without introducing foreign constructs. As an extension of Bitcoin, Fractal is far less limited by historical limitations on the main Bitcoin chain, which exist for a reason. Fractal can do more, including activating opcodes such as OP_CAT and beyond, to actually extend Bitcoin from a single blockchain into a system. The blockchain itself doesn't scale, but the system can scale in many ways.

How does Fractal enable infinite scalability?

A fractal is a geometric shape or pattern that displays similar structures at many different scales.

Fractal achieves infinite scalability through a recursive approach to blockchain virtualization. By virtualizing the Bitcoin Core into deployable instances of Bitcoin Core Software Packages (BCSP), Fractal enables multiple instances to run in parallel, each with its own capacity, without departing from Bitcoin's original architecture.

This creates a network of interconnected layers that can expand indefinitely.

Fractal is recursively scaling Bitcoin, which means it is, in essence, creating recursive layers using Bitcoin core software. This is what makes Fractal natively compatible with Bitcoin, and able to support multiple opcodes (such as OP_CAT), and core Bitcoin protocols such as Ordinals, BRC-20, Runes, RGB++ and more, without any complex or expensive reconfiguration by any developer team that wants to build on Bitcoin. The concept of recursivity is also very familiar to most developers, who may write functions that can repeat themselves indefinitely.

In practical scaling terms, the cloud is a good illustration of the scaling instances. As an example, let’s say you run a prototype instance for your initial customers. As your app gets more popular, you will have to scale and to build or add more instances for more customers beating a path to your app. The cloud enables you to run numerous instances to deal with dynamic scaling situations. That is the intention behind Fractal, and why a development team may need many instances in a layered way. It can be done recursively, or horizontally or vertically. It depends on the user requirement and situation, and you can have different configurations and different sets of parameters to fit a variety of scenarios.

In upcoming iterations of Fractal, there will be more examples showing how internet-scale applications can scale up and down with Fractal layers. This is what will enable large-scale, on-chain applications that truly bring mass adoption on the robust Bitcoin network.

Fractal’s native token is FB.

On Fractal, Fractal’s native token (FB) is used as the transaction fee.

While the core contributor team initially considered using Bitcoin as transaction fees, they realized that having a native token would ensure stability and reliability in the network's operation. The primary reason for introducing a native token was to avoid reliance on a bridge for BTC, which could lead to issues if the bridge becomes unstable or is compromised.

Other possible use cases of FB include:

1. Inter-layer bridging between the infinitely scalable Fractal layers via the Fractal Elevator (as described in the Fractal technical litepaper).

2. Community governance tool for Fractal Bitcoin, playing a role in guiding development and incentivizing contributions to the Fractal network

3. Use in certain services or tools within the Fractal ecosystem that require holding or spending Fractal tokens.

4. As the most basic measuring unit of programmable execution cost on the platform, enabling more innovative use cases for contracts.

Fractal can be purely characterized as a infinitely scaling system for Bitcoin.

At the moment, Fractal operates in a much simpler manner compared to other approaches, especially in terms of settlement between the Bitcoin mainnet and Fractal.

• Optional Settlement on Bitcoin Mainnet: Fractal transactions are not required to settle on the Bitcoin mainnet permanently. Users have the option to settle on Bitcoin layer one if they choose, but it’s not necessary for every transaction. This allows Fractal to function autonomously without constantly relying on the Bitcoin mainnet for transaction settlement, unlike EVM-based layer twos that depend completely on a bridge to layer one. At the same time, Fractal is secured by merged-mining, where miners who mine Bitcoin also contribute to Fractal’s security — this means that Fractal inherits extremely strong security as a network, now with 50-60% of the Bitcoin network hash rates.

• Lower Fees, More Transactions: Fractal’s core philosophy is to enable more transactions with lower fees compared to Bitcoin’s mainnet, providing greater scalability.

• An Extension of Bitcoin: Developers and users are free to choose only critical or large Fractal transactions for settlement on Bitcoin layer one, making Fractal an extension of Bitcoin rather than an isolated ecosystem, enhancing Bitcoin's utility without adding unnecessary complexity.

While Fractal is considered a sidechain by some observers, in the long-run, it cannot be characterized as such. While it may appear similar to a sidechain at first glance, Fractal's long-term vision is far more transformative. Rather than being a single, parallel chain, Fractal aims to extend Bitcoin into a scalable, multi-layered system with an infinite and dynamic number of instances. This approach allows for unprecedented flexibility and scalability, adapting to the ever-changing demands of a global digital economy.

Each Fractal instance can be tailored to specific use cases or requirements, creating a rich, diverse ecosystem built on Bitcoin's fundamental principles. By enabling this multi-instance architecture, Fractal paves the way for Bitcoin to evolve from a single blockchain into a comprehensive, infinitely scalable system.

Philosophically, Fractal was created to solve problems for Bitcoin.

Fractal exists in service of Bitcoin. Fractal is meant to be a long-term project; our treasury has been planned such that we continue to invest in the ecosystem over 10 years. The aim is to make the pie bigger so that more can be shared in the future, where more can participate in the growth and prosperity of the Bitcoin network.

In the Fractal tokenomics, the team lays out exactly how the allocations may be spent over the next 10 years, with a full list of the reserve addresses transparently listed at the end of the doc. This means anyone can track these addresses and find out where the funds are going and when. It is Fractal's intention to be fully transparent at all times, so that the community can be confident in the governance of the network.

Fundamentally, Fractal is focused on scaling Bitcoin as-is. The key is not to get into debates about what should be, but to provide tools and the right environment for experimentation. Fractal believes the future is all about accelerating progress and improvements, keeping up with what real Bitcoin users want.

Fractal is all about empowering Bitcoin retail users

At its core, Fractal is driven by a vision to empower retail users in the Bitcoin ecosystem. While many blockchain projects focus on institutional players or "whales," Fractal is firmly focused on the needs of the everyday Bitcoin user, aiming to provide them with more opportunities for active engagement and experimentation.

This focus on retail users is evident in several aspects of Fractal's design and approach:

1. User-Friendly Integration: Fractal uses the same address format as Bitcoin, making it easy for regular users to interact with the platform without learning new systems or managing multiple addresses.

2. Diverse Functionality: By supporting multiple protocols like BRC20, Runes, Ordinals, and CAT, Fractal allows retail users to explore a wide range of Bitcoin-based applications and assets.

3. Active Engagement: Fractal is designed for users who want to do more with their Bitcoin, whether it's participating in DeFi, exploring digital collectibles, or engaging with new forms of Bitcoin-native assets.

4. Accessibility: The platform's design lowers barriers to entry, making it easier for average users to participate in more advanced Bitcoin use cases.

5. Community-Driven Growth: Fractal's growth has been organic and through word-of-mouth, reflecting its appeal to grassroots users rather than relying on paid promotions or partnerships.

This retail-centric approach sets Fractal apart in the blockchain space. Fractal is building for the everyday crypto user interested in exploring the full potential of Bitcoin.

By creating a platform where retail users can actively participate, innovate, and experiment, Fractal is democratizing access to advanced Bitcoin functionality. This approach not only broadens the appeal of Bitcoin but also fosters a more diverse and robust ecosystem.

As Fractal continues to evolve, its commitment to empowering retail users remains at the forefront. By providing a playground for innovation and experimentation, Fractal is helping to shape a future where Bitcoin is not just a store of value, but a dynamic, interactive ecosystem accessible to all.

Fractal’s Cadence Mining, designed to balance security and inclusivity

At the heart of Fractal's consensus mechanism lies an innovative approach known as "cadence mining." This hybrid system combines the security benefits of Bitcoin's proven mining security with the accessibility of permissionless mining, creating a balanced and robust network.

Fractal uses of the SHA256d mining algorithm, the same algorithm employed by Bitcoin. This choice ensures compatibility with existing Bitcoin mining infrastructure and expertise, allowing miners to easily participate in securing the Fractal network. By adopting SHA256d, Fractal leverages the robust security and decentralization that has made Bitcoin the gold standard of cryptocurrency networks.

Cadence mining comprises two components:

1. One-third Merged Mining: This portion allows Bitcoin miners to simultaneously mine Fractal blocks while mining Bitcoin. It leverages the enormous hash power of the Bitcoin network, providing Fractal with a high level of security from day one. Currently, about 50-60% of Bitcoin's hash rate is engaged in merge-mining Fractal, demonstrating strong miner support for Fractal, with concrete economic contribution and input.

2. Two-thirds Permissionless Mining: This component opens up mining participation to a broader range of individuals and entities. It allows for greater decentralization and provides opportunities for those who may not have the resources to compete in Bitcoin mining directly.

The balance between these two approaches offers several advantages:

• Security: By tapping into Bitcoin's hash power, Fractal benefits from the world's most secure blockchain network.

• Decentralization: The permissionless component ensures that mining is largely accessible to anyone who wants to participate in mining Fractal and contributing to its security.

• Flexibility: Miners can choose how they want to participate, either through their existing Bitcoin mining operations or as solo Fractal miners.

The success of this approach is evident in the numbers. The permissionless side of Fractal's mining has seen one of the highest hash rates of any proof-of-work networks.

Fractal provides alternatives and seeks to protects Bitcoin’s security.

Fractal provides an alternative source of revenue to Proof-of-Work miners, who are operating in a difficult macro environment of rising costs and decreasing profitability.

Miners can continue to operate and contribute to the security of Bitcoin, while participating in the growth on Fractal. Fractal introduces network-level diversity, allowing miners to deploy resources across multiple platforms. The ability to allocate computing power across different networks, like on Bitcoin and Fractal, creates a more resilient and prosperous ecosystem for miners. Similar to diversifying a financial portfolio, this approach makes the system more robust and less reliant on a single source of economic activity.

Cadence mining represents a thoughtful solution to the challenges of launching a new blockchain network. It provides strong security through merge mining, while also fostering a diverse and decentralized mining community through its permissionless component. This innovative approach exemplifies Fractal's commitment to creating a scalable, secure, and accessible extension of the Bitcoin ecosystem.

Fractal for Developers: An Innovation Playground

Fractal has quickly established itself as a vibrant ecosystem for developers looking to build Bitcoin-native applications. Its design and features make it an attractive platform for a wide range of projects, from decentralized finance (DeFi) to advanced cryptographic implementations.

One of Fractal's key strengths is its support for multiple native protocols. Developers can work with BRC20, Runes, Ordinals, and CAT20, providing a rich toolkit for creating diverse applications. This multi-protocol support allows developers to choose the best fit for their specific use case while remaining within the Bitcoin ecosystem.

Fractal is uniquely completely compatible with Bitcoin.

For developers looking to build on Bitcoin, Fractal offers a seamless transition and familiar environment. The mechanism behind Fractal is intentionally designed to mirror Bitcoin's, ensuring developers can work as freely as they would on the Bitcoin mainnet.

Historically, developers have found Bitcoin development more challenging compared to platforms like Ethereum, which offer more modern and accessible programming languages. However, Fractal bridges this gap by providing a comprehensive set of APIs and libraries that support various protocols such as BRC20, Runes, and Ordinals. This robust toolkit allows developers to build on Bitcoin without getting bogged down in the intricacies of transaction composition or UTXO management.

Developers can start with Fractal's user-friendly APIs to quickly launch their projects, gradually delving deeper into blockchain specifics as they scale. This approach facilitates a smooth pathway for projects to evolve from Fractal prototypes to full-fledged Bitcoin mainnet applications, or vice versa, with minimal code changes. Adapting existing Bitcoin projects to work on Fractal can be remarkably efficient, often requiring less than an hour of modifications.

This compatibility and ease of integration underscore Fractal's commitment to enhancing Bitcoin's ecosystem while maintaining its core principles and functionality. As a result of the way Fractal is architected, developers don't have to worry: anything built on Fractal will always work on Bitcoin, because the compatibility is carefully maintained.

Fractal is designed to grow both horizontally and vertically, creating a dynamic hierarchy of instances that can adapt to new requirements and use cases as they emerge. This flexible architecture allows developers to strategically place new functionalities within the system, balancing load and optimizing performance across different layers. Much like cloud computing, Fractal is working towards a self-balancing, intelligent system capable of handling complex, diverse scenarios. While this is an ambitious, long-term goal, this approach will ultimately unlock Bitcoin's full potential as a foundation for a wide range of applications and services.

Fractal brings new capabilities to the Bitcoin ecosystem.

1. Smart Contracts and Modular Architecture: Fractal introduces new opcodes like OP_CAT, enabling developers to create complex smart contracts directly on Bitcoin. It supports building internet-scale applications with a modular architecture that integrates Bitcoin-native protocols like BRC-20.

2. Lower Transaction Costs: Fractal offers significantly lower transaction fees compared to Bitcoin, making it easier for projects to test and operate on Fractal. Developers can run their businesses on Fractal and move only the most valuable aspects back to the Bitcoin mainnet when necessary. This creates a flexible ecosystem where high-value assets settle on Bitcoin, while lower-cost and more time-sensitive transactions remain on Fractal.

3. Balanced Ecosystem: Over time, Fractal and Bitcoin can form a harmonious ecosystem. Fractal handles frequent, lower-value transactions, while Bitcoin serves as the hub for high-value assets. This balance allows applications to operate efficiently on both networks, enhancing scalability without compromising security.

4. An Innovation Playground: Fractal provides a fertile ground for developers to experiment and push the boundaries of Bitcoin. It’s a space for testing new ideas and applications, offering a sandbox for innovation while Bitcoin remains the anchor for core value.

The platform has already seen the emergence of several noteworthy projects:

• Infrastructure and tooling around OP_CAT, to enable developers to create more interesting smart contract-like covenants and applications, as a testbed for what happens on the Bitcoin mainnet.

• Decentralized exchanges are bringing DeFi capabilities to the Bitcoin ecosystem through Fractal.

• Advanced cryptography like zk-based verifiers demonstrates the platform's capability to support cutting-edge cryptographic solutions, while zk-based atomic swaps are in deployment.

• Cross-chain bridges are enhancing interoperability between Fractal and other networks.

• Large scale games, virtual worlds, and new creative art and collectibles are pioneering a new wave of artistic innovation on Fractal.

Fractal's compatibility with existing Bitcoin infrastructure makes it easier for developers to port their skills and projects. The familiar address format and similar development paradigms lower the barrier to entry for Bitcoin developers looking to expand their horizons. Applications that work on Bitcoin will work on Fractal, and vice versa.

Furthermore, Fractal maintains a public roadmap at build.fractalbitcoin.io, providing developers with insight into upcoming features and improvements. This transparency allows developers to plan their projects in alignment with the platform's evolution.

The rapid growth of the Fractal ecosystem, with numerous projects launching within a month of the mainnet going live, speaks to the platform's appeal to developers. By providing a Bitcoin-native environment for innovation and experimentation, Fractal is fostering a new wave of creativity in the cryptocurrency space.

Additonally, Fractal offers ecosystem grants for developers building on Fractal. The grants are heavily weighted for innovation and technical implementation, with a component of community engagement. This is to reward developers who are pushing the envelope of what’s possible on Bitcoin and Fractal. All grants are retroactive, fostering a meritocratic environment where real impact is rewarded.

As Fractal continues to evolve, it promises to remain a fertile ground for developers seeking to push the boundaries of what's possible in the Bitcoin ecosystem.

Summary: Fractal convenes all Bitcoin users

Fractal's design philosophy centers around creating a solution that harmoniously integrates with various stakeholders in the Bitcoin ecosystem. This approach ensures that Fractal not only scales Bitcoin but does so in a way that benefits all participants.

Fractal has three major priorities:

1. Ensure that it continues to enable scaling while being completely rooted in Bitcoin.

2. Stability of the Fractal network overall.

3. Ensuring that ecosystem projects are successful, and achieve the adoption they seek.

Fractal’s philosophy is to get Bitcoin-based innovations out the in the world as quickly as possible.

Ultimately, Fractal's philosophy is a pragmatic, action-oriented approach to blockchain development. Rather than engaging in theoretical debates, Fractal has focused on creating a platform that comes "with batteries included" — ready for immediate, practical use.

Fractal is versatile and provides comprehensive support for various protocols. The best way to understand Fractal's potential is to see it in action. It is a flexible, powerful extension of Bitcoin that enables developers to build a wide array of applications and services without limitations. By providing a robust foundation that supports multiple protocols out of the box, Fractal is empowering creators to focus on innovation rather than infrastructure.

Fractal continues to be committed to advancing the Bitcoin ecosystem through practical, ready-to-use solutions. (Find out more about the Zen of Fractal.)

Fractal aims to make Bitcoin innovative and fun for all users.

For regular users, Fractal opens up a world of possibilities. It supports multiple native protocols including BRC20, Runes, Ordinals, and CAT20, allowing users to engage with Bitcoin in new and exciting ways. This expanded functionality satisfies the growing demand for more interactive and diverse use cases within the Bitcoin ecosystem.

Service providers find integrating Fractal to be a seamless process. The use of the same address format as Bitcoin means that existing infrastructure can be easily adapted to support Fractal. This compatibility significantly lowers the barrier to entry for service providers looking to offer expanded functionality to their users.

Miners, a crucial component of any blockchain ecosystem, benefit from Fractal's innovative "cadence mining" approach. This hybrid system combines one-third merged mining with two-thirds permissionless mining, striking a balance that appeals to different types of miners. The merged mining component has attracted a significant portion of Bitcoin's hash rate, while the permissionless side provides opportunities for a wider range of participants.

For developers, the platform provides a abundant playground for creating and deploying a wide range of Bitcoin-based applications. This developer-friendly environment is crucial for the long-term growth and diversification of the ecosystem.

By carefully considering and accommodating the needs of various Bitcoin stakeholders, Fractal has positioned itself as more than just a scaling solution. It's a bridge that connects different parts of the Bitcoin ecosystem, fostering innovation and collaboration while maintaining the core principles that make Bitcoin valuable.

Closing thoughts: Fractal is an extension to Bitcoin’s vision.

Fractal is driven by a vision that aligns closely with Satoshi Nakamoto's original concept of Bitcoin — not just as a digital currency, but as a comprehensive electronic cash system. Over the past decade, while Bitcoin has made significant strides, it hasn't fully realized its potential to address real-world financial needs on a global scale.

Fractal sees itself as an extension of Bitcoin, designed to evolve it into the robust, multi-faceted system that the original Bitcoin whitepaper envisioned. The goal is to bridge the gap between Bitcoin's foundational principles and the practical demands of the real world. Fractal is not just scaling Bitcoin in terms of transaction capacity; it is expanding Bitcoin’s capabilities to interact with and solve problems across various industries. This approach allows Bitcoin to grow beyond a single construct into a versatile, problem-solving ecosystem.

In essence, Fractal is creating a system that can truly serve as the backbone of a new, more efficient, and inclusive global financial infrastructure. Fractal is not reinventing the wheel; it is simply following through on the revolutionary idea that Satoshi set in motion, adapting it to meet the complex needs of our modern world.