Fractal Bitcoin – another token or a fresh look at the mining ecosystem

1 måned ago 0 16

We need to start with a little bit of history. Back in January 2009, an unknown genius and enthusiast under the pseudonym Satoshi Nakomoto revolutionized the world of digital assets and blockchain technology, laying the foundation for an industry that in 15 years has gone from entertainment for enthusiasts to a serious phenomenon with a capitalization of trillions of dollars. Now cryptocurrencies are used by individuals, businesses and governments as a tool for daily payments, international settlements, asset preservation and even participate in the formation of annual budgets and national funds.

Of course, big money and big power coming into the industry has already dispelled some of the former spirit and romance of crypto transactions. However, these funds and attention have provided the birth of new projects and solutions to problems that Satoshi may not have thought of at all.

During the period of its formation, BTC has experienced a large number of divisions – “forks” designed to solve different problems. For example, scaling and increasing the block size to reduce the commission in LTC (even with a change of algorithm), increasing the number of transactions in a block as BCH. There were also projects that aimed to use an existing algorithm, but make their own product without being tied to the underlying coin. The bifurcation (or fork) mechanism assumes that all holders of the primary token will receive a proportional or equal amount of the new coin after the split. Self-starting saves creators from such a problem.

During this time, the main cryptocurrency has experienced many ups and downs of the rate, various shocks. However, it still remains the favorite asset of experienced miners and large companies, as well as the choice of conservative investors.

And then came April 2024, which brought another halving (halving the reward for a mined block) to the Bitcoin network. But because of this event, many, even experienced bitcoin miners did not notice another important phenomenon. This is the minting (mint) of the first circulation of bitcoin-runes of various degrees of rarity. The event, comparable to the launch of a new high-profile meme token, caused congestion and transaction slowdowns in faster blockchains, and for bitcoin it became a real test. For almost three days the network had impressive transfer fees, many exchanges closed bitcoin cacheout, wallets urged to refrain from transactions, the value of which instead of the usual 1-3 dollars reached up to 200 dollars and even more.

Fractal Bitcoin (FB) was created to eliminate such problems in the future. This is a second-level solution (so-called L2), designed to take over all the next minting of runes (at least 11 with an interval of about 4 months) and meme coins that will appear on the BRC-20 protocol. At the same time, the loads on the Bitcoin network and commissions will be minimal.

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The main solutions presented by the team at the launch:

The network was launched on September 9, 2024.
The maximum number of FB coins at the moment is 210 million. Of these, 50% (105 million) are held by investors and the project team. Coins from the so-called pre-mine (or pre-release) have different unlocking period and target purpose to avoid unrest and market crash.
The time to find a block on the FB network is 30 seconds (vs. 10 minutes per block on Bitcoin).
The base reward per block is 25 FB coins.
The remaining 105 million FB coins are allocated for PoW mining. At the same time, the reward will be distributed as follows: about 33% of coins in Merged Mining (mining combined with BTC mining) and about 67% of coins in classic Permissionless Mining (only FB coins are mined).

The launch of Fractal Bitcoin could be one of the most notable events in the world of mining in 2024 for several reasons at once. Here they are:

The first launch of federated mining on the Bitcoin network.
A targeted solution that will help miners stay on trend and earn rewards through meme tokens during minting and minting runes.
The project combines the mechanism of pre-mine and classic mining with impressive resources for promotion.
Interest from the community and startup support from most major mining pools.

We can have different opinions about the tools and promotion model chosen by the project team, but the fact that it is at least worth following is absolutely certain. Major mining pools have already paid attention to the coin and started to support it. ViaBTC launched complex mining of BTC and FB with zero commission and free withdrawal to CoinEx.

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Author: Saifedean Ammous, an expert in cryptocurrency economics.