Fractal Bitcoin Could Provide Miners With An Additional Revenue Stream

A long-overdue Bitcoin scaling solution went live on the mainnet on September 9, 2024. Fractal Bitcoin, as it’s called, uses the Bitcoin Core code to empower the network to adopt new, faster, and more efficient processes without sacrificing the durability or decentralization of the base layer. To be more precise, it allows Bitcoin to scale without limits and support web applications whilst maintaining high consistency with its core principles. Fundamentally, it’s an integrated mining system that functions as a second layer for Bitcoin, a technology built on top of the Bitcoin blockchain that helps extend its capabilities.

In homage, Fractal Bitcoin included in the first block of its blockchain the same message embedded in Bitcoin’s genesis block – The Times 03/Jan/2009 Chancellor on brink of second bailout for banks – that is attributed to the pseudo-anonymous creator Satoshi Nakamoto. The native token of the network is FB, and it serves several key functions within the ecosystem, namely:

•   It’s used to pay for transaction fees across the Fractal layers
•   It guarantees access to network nodes and various services
•   It’s used as a utility token for new projects and applications
•   It plays a role in maintaining and expanding the network

If you know how to buy Bitcoin, you already know everything there is to know about buying the FB token. It’s pointless to try to explain, especially since the Bitcoin price can impact the strategy you use for both.

Fractal Bitcoin Is The Only Scaling Solution That Uses The Bitcoin Core Code

The Bitcoin Core, written in C++ and Python, is the most popular software client leveraged by participants to create nodes, store coins, and carry out other operations on the Bitcoin network. Anyone with an internet connection can check it out. The Bitcoin Core was developed by Wladimir van der Laan based on Satoshi Nakamoto’s original reference code. There’s no voting or corruptible process involved; there’s solely individual software following the same rules to evaluate blocks and determine which one is valid. You can think of it as the backbone or engine that keeps Bitcoin running smoothly.

Unlike other scaling solutions, Fractal Bitcoin stays true to Bitcoin’s foundation while preparing it to handle whatever the future brings. All Fractal transactions and hashes can be traced back to their source on Bitcoin’s mainnet, which means it preserves a self-replicating consistency. Token standards, wallets, and Ordinals are compatible with Fractal Bitcoin. What’s more, Fractal Bitcoin provides the community with opportunities to influence decisions, which makes it a forward-thinking, scalable solution that stays committed to Bitcoin’s roots.

Fractal Bitcoin’s Recursive Nature Allows Infinite Scalability And Ensures Consistent Security

Fractal Bitcoin operates by resorting to virtualization techniques that enable recursive scaling, so Bitcoin can now process many more transactions in a single proof. The computational resource barrier is no longer a constraint, so platforms and applications can further scale their cost and performance. The block time is reduced to 30 seconds, so transactions settle roughly 20 times faster, and a plethora of Fractal layers can be built on top of other layers, each reproducing the main chain’s structure and consensus. Every transaction on the blockchain is traceable, so it’s not necessary to resort to forks or shards. 

Put simply, Fractal Bitcoin’s key advantage lies in its ability to scale the network efficiently without interrupting operations or minimizing performance. The Bitcoin blockchain can scale up or down to easily handle peak workloads, that is, it can handle large-scale, internet-based applications while alleviating congestion. Assets can be transferred between different layers on the Fractal network without much difficulty, indicating that complex relay systems are redundant. Fractal Bitcoin supports the BRC-20 token standard that enables the minting and transfer of fungible tokens, like NFTs. The versatility of BRC-20 tokens extends into loyalty programs, crowdfunding platforms, and decentralized exchanges.

Fractal Bitcoin Has A One-Of-A-Kind Consensus Mechanism: Cadence Mining

Cadence mining is a unique consensus mechanism used by Fractal Bitcoin that makes it possible for miners to mine FB alongside BTC, therefore achieving optimal outcomes. This is an attractive and much-needed revenue stream for Bitcoin miners in the post-halving environment, as they don’t have to call upon high-performance computing or AI. Fractal Bitcoin’s hybrid system allows anybody to join in on the action and take advantage of the shared hashing power across multiple chains, promoting secure and economically rewarding participation. Miners can diversify their portfolios, which goes a long way in a time of rising mining difficulty and increasing costs.

Asset Tokenization Is An Operation That Greatly Benefits Bitcoin Miners

Adoption isn’t yet widespread despite the hype surrounding Ordinals, Bitcoin Runes, and BRC-20 tokens. Tokenization is the process by which an issuer creates a unique digital representation of an asset on the blockchain network: metadata is added or inscribed onto Satoshis. The token definition and the token business logic are verified and enforced by miners who adhere to the Bitcoin mining protocol and consensus. If Fractal Bitcoin meets with success, it could improve miners’ revenue, as they’re already struggling to stay afloat. Profitability from Bitcoin mining alone becomes more challenging.

Wrapping It Up

Fractal Bitcoin is a separate, independent blockchain that is directly connected to the Bitcoin main chain, aiming to enhance its scalability and interoperability. It capitalizes on recursive virtualization technology in its architectural configuration to ensure multiple layers operate separately whilst remaining connected to the Bitcoin network. Fractal Bitcoin doesn’t count on external systems or separate chains, meaning it provides compatibility for BTC-related, Ethereum, and Web3 developers who are limited by the constraints of the Bitcoin mainnet. End users, such as gamers, DeFi participants, and NFT collectors, can take advantage of Fractal Bitcoin’s scalable and cost-effective infrastructure.

Last but certainly not least, Fractal Bitcoin has integrated support for the CAT-20 token standard, which leverages the capabilities of the OP_CAT opcode and allows developers to create fungible tokens with high levels of built-in security. Unlike standard tokens, CAT-20 tokens are designed to be compliance-aware, which basically means they adhere to regulatory standards throughout their lifecycle. The token standard encourages community participation and, most importantly, developer innovation. CAT-20 is compatible with the UTXO model and can support complex compostable transactions.