Fractal BitcoinPrice

(FB)

Fractal Bitcoin's classification is frequently debated. While the team presents it as a Layer 2 scaling solution for Bitcoin, critics often describe it as functioning more like a sidechain. This distinction arises because FB uses its own independent token (FB) for gas and currently lacks a fully trustless, native peg-in/peg-out mechanism. These characteristics are typically associated with sidechains rather than traditional Bitcoin Layer 2s, though the project aims to integrate more native pegging solutions.

Recursive Virtualization is Fractal Bitcoin's core innovation, setting it apart from a simple Bitcoin fork. It modifies Bitcoin Core code to create multiple, infinitely scalable "fractal" layers. These layers maintain full compatibility with Bitcoin’s underlying script language and cryptographic primitives, essentially extending Bitcoin's capabilities into new, highly scalable environments without altering the mainnet. This approach aims to provide native scaling while preserving Bitcoin's foundational security and features.

The FB token is integral to the Fractal Bitcoin network's operation, serving several key utilities. Primarily, it is used to pay for transaction fees on the network, distinguishing it from many Layer 2s that utilize Bitcoin for gas. Additionally, FB grants access to network services and allows participation in decentralized governance, enabling holders to vote on protocol upgrades. It also functions as utility within various ecosystem applications and launchpads, such as PizzaSwap, fostering engagement and development within the Fractal network.

Cadence Mining is Fractal Bitcoin's innovative hybrid mining model. It allows miners to use existing SHA-256 ASIC hardware, compatible with Bitcoin, to secure the Fractal network. The model splits block rewards: one-third of all blocks are "merged-mined" simultaneously with Bitcoin, leveraging its robust security. The remaining two-thirds of blocks are mined independently on the Fractal network. This unique approach aims to provide strong security for Fractal by utilizing a significant portion of Bitcoin's global hashrate while also allowing for independent network progression.

Fractal Bitcoin employs specific mechanisms to prevent transaction replay attacks, a critical concern given its use of the same address format as Bitcoin. It achieves this by maintaining an entirely separate Unspent Transaction Output (UTXO) set and utilizing a distinct network ID from the Bitcoin mainnet. This fundamental separation ensures that a transaction broadcast or intended for the Fractal network cannot be accidentally or maliciously replayed and executed on the Bitcoin mainnet, safeguarding users' funds and network integrity.

The CAT20 token standard is a native Fractal Bitcoin standard designed to leverage the re-enabled `OP_CAT` opcode. This opcode enables advanced smart-contract-like functionalities and complex covenants directly on the Fractal network, which are not currently possible on the Bitcoin mainnet. Unlike other standards, which often rely on external indexers for verification, CAT20 tokens are verified directly by miners on the Fractal chain. This direct, on-chain verification provides a more native and integrated approach for token creation and management within the Fractal ecosystem.