Fractal Bitcoin (FB): A Layer 2 Scaling Solution for Bitcoin Built on Bitcoin Core

Fractal Bitcoin (FB) is a Layer 2 Bitcoin scaling solution designed to enhance Bitcoin's scalability and extend its functionality while maintaining its core security and decentralization benefits.

Fractal Bitcoin (FB) is a Layer 2 Bitcoin scaling solution designed to enhance Bitcoin's scalability and extend its functionality while maintaining its core security and decentralization benefits. Set up as a sidechain platform, Fractal directly leverages the Bitcoin Core code.

Fractal Bitcoin uses recursive virtualization technology in its architectural setup to offer multiple layers that operate independently while remaining connected to the Bitcoin network. It's the first and only Bitcoin scaling solution that applies virtualization within the Bitcoin ecosystem. Each layer operates independently, leveraging Bitcoin's underlying consensus mechanism. This ensures that Fractal is capable of offering its scalability benefits without sacrificing the security of transactions.

Layers can be spun off as needed, creating a truly flexible and scalable platform for conducting Bitcoin transactions. Additionally, Fractal's sidechain supports smart contract functionality, opening the way to using decentralized apps (DApps) within the Bitcoin ecosystem.

The project launched its mainnet operations in early September 2024. It's been developed and is actively supported by the team at the UniSat Wallet project, a crypto wallet solution for the Bitcoin ecosystem.

Fractal Bitcoin's core technology is based on recursive virtualization. Virtualization, in general, lets you create virtual instances of a system, in this case virtual replicas of the Bitcoin chain. “Recursive” indicates that these virtual instances (or layers, using the project's terminology) can be created continuously, launching layers that operate independently of each other. In theory, this allows Fractal to scale unlimited layers recursively within the overall technical capacity restrictions of the platform.

Each virtual layer runs its own processes without clogging up the main Bitcoin network. The layers are designed to process each transaction block in 30 seconds, which is considerably faster than Bitcoin's own 10-minute block intervals.

The use of virtualization as a scalable computing system, along with the smart contract capabilities of the Fractal Bitcoin platform, enables a variety of use cases, including solutions in decentralized finance (DeFi), gaming, supply chain management and more.

Fractal has also integrated support for the CAT20 token standard. CAT20 lets Fractal developers create fungible tokens with high levels of built-in security, adherence to Bitcoin's consensus, compatibility with the blockchain's native unspent transaction output (UTXO) model and the capacity to support complex composable transactions.

Fractal also supports three highly popular Bitcoin asset types: BRC-20 tokens, Runes tokens and Bitcoin Ordinals. Users and issuers of these assets can take advantage of Fractal's superior scalability and quick confirmation times, a key consideration given the frequent complaints about these tokens’ activity congesting the Bitcoin network.

BRC-20 tokens are fungible Bitcoin assets created by inscribing token data into Bitcoin satoshis, the smallest units of a Bitcoin. Introduced in March s023 and based on Bitcoin Ordinals theory, BRC-20 tokens are commonly created as meme coins. Fractal Bitcoin fully supports this token standard on its own platform.

However, Fractal's BRC-20 tokens have to follow a somewhat different naming standard from the one used by BRC-20 assets issued directly on Bitcoin. These differences primarily relate to ticker names being limited to 6–12 bytes, and rules governing what characters may be used for the tickers. In terms of their functionality, Fractal-based BRC-20 assets are similar to their Bitcoin-based counterparts.

Runes are another highly popular fungible token variation on Bitcoin. Unlike BRC-20 tokens, Runes don't use Ordinals inscription methodology, and are instead based on Bitcoin's native UTXO model. Thanks to this distinction, Runes are considered a more lightweight, low-footprint way of issuing and using Bitcoin-based fungible assets.

Fractal Bitcoin directly supports these assets as well, and Fractal-based Runes are etched, minted and used in the same way as on Bitcoin to create a familiar environment for Runes enthusiasts. Unlike BRC-20, Runes tokens' tickers on Fractal are no different from the naming standards used on Bitcoin.

Ordinals inscriptions, a technology that has enabled Bitcoin-based NFTs, are also available on Fractal, and in the same format as on the Bitcoin blockchain. One user-friendly way to create inscriptions on Fractal is through the Fractal Bitcoin wallet on the UniSat platform.

The UniSat Wallet extension features a step-by-step procedure that makes issuing Fractal Ordinals inscriptions accessible even to users with no understanding of the technical details behind this technology. You can also trade these assets via the UniSat Marketplace on Fractal.

The Fractal Bitcoin platform was created by the UniSat team, so it's no wonder that the UniSat Wallet is the primary vehicle for navigating the platform's ecosystem and carrying out transactions on it. The UniSat Wallet supports the issuance of BRC-20 tokens, Ordinals collections and