CAT20 has the following technical advantages:
1. Security: PoW consensus mechanism, fully verified by miners;
UTXO-based: enforced by Bitcoin scripts on L1, without external or off-chain indexers;
2. Technological innovation: its modularity and programmable minting provide flexible and composable rules for DApps such as AMM, lending and staking;
3. Interoperability: cross-chain interoperability, allowing interoperable dApps to be built on Fractal Bitcoin.
4. Light client: supports SPV and enables light clients to effectively verify transactions, maintaining decentralization and accessibility.