What is Fractal Bitcoin (FB)?

By CMC AI
08 September 2025 10:39PM (UTC+0)

TLDR

Fractal Bitcoin (FB) is a Bitcoin-native scaling solution that extends Bitcoin’s capabilities using its core code to enable infinite scalability while maintaining compatibility with Bitcoin’s principles.

  1. Bitcoin-native scaling – Built using Bitcoin Core code for seamless integration and infinite recursive layers.

  2. Hybrid mining model – Combines merged mining (with Bitcoin) and permissionless mining to balance security and scalability.

  3. Ecosystem utility – FB tokens power transactions, governance, and cross-layer operations within the Fractal network.

Deep Dive

1. Purpose & Value Proposition

Fractal Bitcoin addresses Bitcoin’s scalability limitations by creating recursive layers using Bitcoin Core code. This allows applications requiring high throughput (e.g., DeFi, gaming) to operate natively on Bitcoin’s security foundation. Unlike sidechains, Fractal maintains full compatibility with Bitcoin’s address format, Script, and Proof-of-Work consensus, enabling developers to build without rewriting code (Fractal Bitcoin).

2. Technology & Architecture

Fractal uses Cadence Mining:
- ⅓ of blocks are merged-mined with Bitcoin, leveraging ~90% of Bitcoin’s hashrate (via pools like AntPool and Foundry).
- ⅔ of blocks are permissionlessly mined on Fractal, adjusting difficulty daily to sustain throughput.
This hybrid model ensures security from Bitcoin’s network while enabling faster block production (20× Bitcoin’s speed). To manage data growth, Fractal supports pruned nodes, which discard older blocks to reduce storage demands (Blockspace Report).

3. Ecosystem & Token Utility

The FB token serves multiple roles:
- Transaction fees: Required for on-chain operations.
- Inter-layer bridging: Facilitates asset transfers between Fractal layers via the Fractal Elevator.
- Governance: Used for voting on protocol upgrades and resource allocation.
Ecosystem apps like atomic swaps (BTC ↔ FB) and BRC-20 decentralized exchanges highlight its focus on Bitcoin-native DeFi (TheStreet).

Conclusion

Fractal Bitcoin is a recursive scaling protocol that amplifies Bitcoin’s utility for high-throughput applications without compromising its core principles. By aligning incentives for miners and developers, it bridges Bitcoin’s security with modern scalability needs. How will Fractal’s layered approach influence Bitcoin’s role in decentralized computing?

CMC AI can make mistakes. Not financial advice.