Bitcoin's Evolution: Fractal Network Leverages 90% of Bitcoin's Hash Rate for Enhanced Functionality

Coin WorldWednesday, Jun 11, 2025 12:49 pm ET
1min read

Spencer Yang, a prominent figure in the crypto industry, has identified a critical need for Bitcoin to evolve beyond its current role as a store of value. Yang, who has a background in co-founding CoinMarketCap and leading retail products at Coinbase, now serves as the managing partner of BlockSpaceForce and directs Fractal Bitcoin. In a recent interview, Yang discussed his vision for extending Bitcoin's capabilities to include flexible payment and application infrastructure.

Yang recognized a gap in Bitcoin's functionality two and a half years ago. While Bitcoin excels at securing wealth, it lacks the infrastructure needed for payments, applications, and new protocols. To address this, Yang developed Fractal, a network that merge-mines alongside major Bitcoin pools. This approach leverages approximately 90% of Bitcoin’s hash rate for shared security, ensuring that the network remains robust and secure.

Fractal's design is built on three core principles. First, miners securing Bitcoin also earn Fractal block rewards, aligning incentives with Bitcoin's security model. Second, Fractal uses Bitcoin Script, ensuring that on-chain activity on Fractal contributes to Bitcoin’s security. Third, the network facilitates seamless asset transfers between Bitcoin and Fractal, making it easier for users to switch between the two.

Yang described Fractal's model as a skyscraper with multiple elevators. Bitcoin serves as the first level, providing a secure foundation. Users can move to higher levels for faster transactions and more advanced features. This approach, Yang believes, could spark a new wave of Bitcoin-powered products over the next five years.

At the Bitcoin 2025 conference, various scaling solutions are vying for attention. Yang emphasized that Fractal stands out by deeply respecting Bitcoin’s core design. He challenged other teams to focus on merge-mining or similar methods that preserve Bitcoin’s security roots, ensuring that the network remains secure and reliable.

Fractal's innovative approach to merge-mining allows developers to tap directly into Bitcoin’s security model, providing a familiar environment for experimentation. Applications built on Fractal inherit Bitcoin’s proven consensus and cryptographic guarantees, making it a reliable platform for new developments. This alignment ensures that Fractal's growth is closely tied to Bitcoin's security, benefiting both networks.

Yang's vision for Fractal represents a significant step forward in the evolution of Bitcoin. By leveraging merge-mining and aligning with Bitcoin's security model, Fractal offers a scalable and secure solution for payments and applications. This approach not only enhances Bitcoin's functionality but also ensures that the network remains secure and reliable, paving the way for a new era of Bitcoin-powered products.

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