Business Model

Introduction: Redefining Healthcare Economics

The BTT business model represents a fundamental restructuring of healthcare economics, particularly in the healthcare sector. By leveraging the powerful combination of artificial intelligence, blockchain technology, and decentralized physical infrastructure, BTT creates a sustainable economic framework that aligns the interests of all participants while addressing key efficiency issues in traditional healthcare service and financing models.

At its core, BTT transforms five key healthcare challenges into opportunities:

High costs and inefficient utilization of advanced AI computing resources
Insufficient liquidity of valuable medical assets and infrastructure
Misaligned economic incentives for preventive care
Friction and inefficiency in healthcare payments
Fragmentation of patient data across healthcare providers

By integrating DePIN hardware dividends, RWA tokenization, healthcare incentive systems, and streamlined payment solutions, BTT creates a circular economy that allows value to flow freely between participants while ensuring beneficial behaviors are appropriately rewarded throughout the ecosystem.

Core Value Propositions

BTT's business model delivers unique but complementary value to each participant group in the healthcare ecosystem, creating powerful network effects that strengthen as the platform grows.

For Healthcare Providers

BTT significantly reduces the cost of advanced AI diagnostic systems by transforming capital expenditure from a fixed cost to a usage-based variable expense. This enables even small to mid-sized clinics to access cutting-edge AI capabilities without the burden of substantial upfront investment. Additionally, BTT's tokenization framework allows these providers to unlock liquidity from traditionally illiquid assets (equipment, properties, intellectual property, and service rights), creating new capital formation opportunities without traditional financing constraints.

For Computational Contributors

BTT transforms excess computational capacity into productive assets capable of generating sustained returns. Individual contributors can deploy home-scale DePIN hardware devices to earn BTT tokens based on their computational contributions, while larger institutional contributors can allocate substantial resources to support more complex healthcare AI applications. This distributed computing network creates a true sharing economy for healthcare AI resources, optimizing utilization and reducing waste throughout the system.

For Patients

BTT fundamentally transforms the economic experience of healthcare through three complementary mechanisms. First, the incentive system rewards preventive care behaviors, treatment adherence, and healthy lifestyle choices by providing BTT points with real economic value. Second, the PayFi payment network reduces transaction costs and accelerates settlement times, making healthcare more financially convenient. Third, the tokenization of medical assets enables patients to participate in fractional ownership of healthcare infrastructure, creating investment opportunities previously limited to institutional investors.

For the Broader Healthcare Ecosystem

BTT's business model drives substantive efficiency improvements by creating price discovery mechanisms for computational resources, establishing valuation frameworks for tokenized medical assets, and reducing friction in payment processes. These efficiency gains translate directly into reduced costs and improved accessibility throughout the healthcare system.

Revenue Streams and Economic Model

BTT's business model integrates multiple complementary revenue streams that collectively ensure sustainable economic growth while delivering value to all ecosystem participants. This multifaceted approach differentiates BTT from narrower blockchain healthcare initiatives and provides resilience against market fluctuations in any single revenue category.

Computational Resource Marketplace

The BTT computational marketplace operates on a consumption-based model where healthcare providers pay for AI computational resources based on actual usage. The pricing structure incorporates multiple variables, including computational intensity, urgency, data volume, and specialized hardware requirements. This consumption-based model typically saves healthcare providers 60-80% compared to maintaining dedicated AI infrastructure or using centralized cloud providers.

From the generated revenue, approximately 70% is allocated to computational contributors in proportion to resource supply, 15% is directed to the BTT development fund for ongoing platform improvements, 10% goes to the BTT Foundation to support ecosystem expansion, and 5% is retained as operational reserves. This allocation ensures that the majority of value flows directly to those providing the infrastructure while maintaining resources for ongoing ecosystem development.

Since deployment, the computational marketplace has shown strong growth, with monthly transaction volumes increasing from 5 million RMB in early 2025 to over 35 million RMB in Q2 2025. Current projections anticipate this volume exceeding 100 million RMB monthly by the end of 2026 as more healthcare providers integrate BTT's AI capabilities into their diagnostic workflows.

Asset Tokenization Platform

The asset tokenization platform generates revenue through a multi-tiered fee structure that balances accessibility with sustainability. Initial tokenization of medical assets incurs a one-time minting fee ranging from 1-3% based on asset complexity, regulatory requirements, and valuation needs. Secondary market transactions on the BTT exchange generate transaction fees of 0.5-1.0%, significantly lower than the traditional 3-7% fees typically associated with medical asset transfers.

Additional revenue sources include periodic revaluation services for tokenized assets (0.25-0.5% of asset value), enhanced liquidity pool management for institutional token holders (1-2% annual management fee), and premium listing services for high-value medical assets seeking broader investor visibility.

The asset tokenization platform has facilitated over 200 million RMB in tokenized medical assets during its initial six months, with projections exceeding 1 billion RMB by mid-2026 as more healthcare providers recognize the capital efficiency improvements offered by tokenization.

Patient Incentive and Reward System

The patient incentive system integrates multiple revenue mechanisms that align economic incentives with improved health outcomes. Healthcare providers pay subscription fees ranging from 3,000-25,000 RMB monthly depending on clinic size to access the complete BTT patient engagement platform, which has demonstrated 22-35% improvements in patient retention for participating clinics.

Commercial partners offering health-related products and services pay arrangement and redemption fees when patients use their BTT points within their ecosystem, creating a robust commercial network that enhances the utility of earned points. Insurance providers increasingly offer premium discounts for patients demonstrating continued engagement with the BTT health incentive system, with a portion of the realized savings flowing back into the BTT ecosystem.

Data from the first two quarters of operation shows an average 27% increase in preventive care visits and a 31% improvement in treatment plan completion rates for participating clinics, directly translating into improved clinical economics and patient outcomes.

PayFi Payment Network

The PayFi payment network generates revenue through a streamlined fee structure that is significantly lower than traditional healthcare payment processing fees while offering enhanced capabilities. Standard transaction fees range from 0.5-0.8% compared to industry averages of 2.5-3.5%, with healthcare providers receiving payment within 1-2 hours rather than traditional 2-5 day settlement periods.

Additional revenue sources include international payment currency conversion fees (0.75% compared to traditional 3-4%), enhanced payment analytics and reporting capabilities (0.25%), and premium listing services for high-value medical assets seeking broader investor visibility (0.5%).

The payment network currently processes over 30 million RMB in medical transactions monthly, with month-over-month growth averaging 12% as more providers adopt the system for the combined advantages of lower fees and accelerated settlement.

The following table summarizes BTT's diversified revenue streams and their relative contribution to ecosystem economic sustainability:

Revenue Stream

Primary Sources

Current Monthly Volume

Projected Growth (2026)

Ecosystem Contribution

Computational Marketplace

Usage fees, Priority processing fees

35 million RMB

100+ million RMB

45%

Asset Tokenization

Minting fees, Transaction fees, Management fees

4 million RMB

12+ million RMB

25%

Patient Incentives

Provider subscriptions, Partner fees, Insurance integration

8 million RMB

30+ million RMB

20%

PayFi Network

Transaction fees, Conversion fees, Analytics services

3 million RMB

20+ million RMB

10%

Institutional Support Structure

The cornerstone of the BTT business model is its robust institutional foundation, which provides the project with unparalleled industry access, technical expertise, and financial stability. This institutional framework creates a unique competitive advantage by integrating blockchain innovation with established healthcare infrastructure and regulatory compliance.

Founding Institutions

BitHive (BTT), as the core founding institution of the project, brings expertise in blockchain technology and healthcare infrastructure to deliver revolutionary distributed AI computing solutions for the global healthcare ecosystem. Initiated by BitWave Protocol Labs in the US and supported by a $6 million Series A funding, BitHive is dedicated to building efficient, secure, and scalable healthcare blockchain infrastructure that connects global medical resources, optimizes healthcare AI computational resource allocation, and promotes secure sharing and utilization of healthcare data.

Hong Kong China Digital Healthcare Group

Hong Kong China Digital Healthcare Group (HK.08406), as BTT's lead investor and technical partner, provides significant technical support and market access channels. As a leading enterprise focused on digital healthcare and medical big data, the group possesses deep expertise in healthcare AI algorithms, medical imaging processing, and health data analytics. Their technical team has developed a medical imaging analysis platform with over 95% accuracy that has been successfully deployed in multiple healthcare institutions across the Asia-Pacific region. This technical partnership provides core algorithmic support and market validation for BTT's AI healthcare applications.

M DAO

M DAO, as a leading investment institution in decentralized healthcare infrastructure, provides BTT with important blockchain technical expertise and decentralized physical infrastructure (DePIN) experience. Its team comprises experts in blockchain vertical domains with deep research in distributed computing networks and blockchain governance mechanisms. M DAO's involvement helps BTT optimize the technical architecture and governance model of its decentralized AI computing network, ensuring system security, scalability, and efficiency.

Web3 Ventures

Web3 Ventures, as BTT's strategic investment partner, possesses deep expertise in Web3, blockchain finance, and distributed infrastructure. Their team has investment experience in multiple successful projects including Ivy League, WBTC, and StarkWare. Web3 Ventures provides BTT with critical guidance on tokenomics framework design, asset tokenization models, and financial tool regulatory compliance, which is essential for BTT's healthcare payment ecosystem and the sustainability of its distributed computing network.

Medical Blockchain Technology Foundation

The Medical Blockchain Technology Foundation, established by BitHive as a non-profit governance entity, oversees the development of the BTT ecosystem and the transition to decentralized governance. The foundation ensures that the project's development aligns with its mission of enhancing global healthcare resource allocation efficiency through healthcare AI computing power and blockchain infrastructure. Key responsibilities include:

Ecosystem governance: Implementing decentralized community decision-making procedures, managing the balance of interests among global healthcare stakeholders, and overseeing continuous improvement of technical protocols.
Technical standard setting: Collaborating with healthcare regulatory bodies worldwide to ensure the platform complies with local healthcare data protection and security standards.
Research and development: Funding cutting-edge research in healthcare AI algorithms and blockchain infrastructure, including collaborations with global medical research institutions and validation of experimental technologies.
Global expansion: Promoting the widespread adoption of distributed AI computing technology in healthcare through educational programs, industry partnerships, and international medical conferences.

The foundation adopts a diversified international governance structure composed of experts from healthcare, blockchain technology, data security, and regulatory compliance, ensuring comprehensive technical and governance oversight, as well as integration with the global healthcare ecosystem. Ongoing operations are supported by percentage allocations from BTT ecosystem activities. This ensures sustainable operations while maintaining a focus on long-term ecosystem health rather than short-term profit maximization.

Capital Support Structure

In addition to the core founding institutions, BTT has received strategic investments from leading venture capital and financial institutions focused on healthcare innovation and blockchain technology. This network of investors provides not only financial support but also strategic guidance and collaboration opportunities that accelerate ecosystem development.

Key Capital Partners Include

Medical Blockchain Technology Fund: Focused on the development of healthcare blockchain infrastructure and AI computing power
Blockchain Innovation Partners: With extensive experience in developing regulatory-compliant blockchain financial products
KNCapital: Specializing in healthcare data security and decentralized physical infrastructure networks, with successful deployments in multiple domains
CryptoSeed Fund: Focused on digital asset investment and building global regulatory compliance frameworks
AN Innovators Capital: Focused on innovative investments in AI computing infrastructure and distributed healthcare systems

These capital institutions collectively hold 19% of the BTT token allocation, creating a strong alignment between their financial interests and the long-term success of the ecosystem. Their involvement is structured with appropriate vesting schedules to ensure continued engagement throughout BTT's multi-year development roadmap.

Market Strategy and Implementation

BTT's market strategy centers on addressing the data processing and AI computational needs of the healthcare sector, creating a flexible framework that can scale over time to meet the diverse needs of the global healthcare ecosystem. This approach recognizes the complexity of the healthcare ecosystem while creating clear pathways for adoption and value creation.

Initial Market Focus: Healthcare AI Infrastructure

BTT begins with a clear starting point in healthcare AI infrastructure applications, specifically targeting diagnostic imaging analysis, treatment planning, and patient engagement within healthcare institutions. This approach provides several strategic advantages:

Medical imaging represents an ideal entry point for blockchain and AI infrastructure implementation due to its standardized data formats, clear computational resource requirements, and significant unmet need for affordable AI diagnostic support. The highly visual nature of medical diagnostics creates immediate value opportunities for AI applications, with various types of medical images—from X-rays, CT scans to MRIs and ultrasounds—benefiting from distributed computational analysis.

Current market research indicates that while over 80% of healthcare institutions globally express interest in AI diagnostic support, fewer than 20% have implemented comprehensive solutions due to high costs and infrastructure requirements. BTT's decentralized computing model directly addresses these barriers by reducing upfront investment requirements and creating flexible usage patterns suitable for healthcare institutions of all sizes.

Scalable Implementation Approach

Rather than attempting to deploy all potential use cases simultaneously, BTT adopts a phased implementation strategy that builds credibility and adoption through demonstrated success in targeted applications:

Phase 1 (Current): Optimization of AI models for medical image analysis, including X-ray anomaly detection, CT scan tumor identification, and preliminary disease risk assessment. These applications provide immediate clinical value with relatively manageable computational requirements, making them ideal for initial network deployment. Current data from pilot implementations shows an average time saving of 9 minutes per diagnosis and a 25% improvement in early condition detection accuracy.
Phase 2 (2025-2026): Expansion into comprehensive treatment planning tools, integrating 3D medical modeling, multi-modal data analysis, and personalized treatment regimen simulation capabilities. These applications require more computational resources but offer higher value to healthcare providers through improved treatment outcomes and increased treatment plan precision, justifying greater network resource allocation.
Phase 3 (2026-2027): Integration of longitudinal patient data analysis, preventive healthcare optimization, and healthcare institution management optimization, utilizing integrated datasets from patient health records, operational systems, and financial platforms. This phase leverages the established infrastructure to create higher-order applications that transform healthcare economics and service efficiency beyond individual diagnostic improvements.
Phase 4 (2027+): Expansion into additional medical specialties and global healthcare markets, including chronic disease management, remote health monitoring, and population health analytics. This expansion utilizes the established computational network while extending market coverage to the broader global healthcare ecosystem.

Market Execution

BTT's marketing strategy balances direct healthcare provider engagement and strategic institutional partnerships to accelerate adoption across the global healthcare landscape:

Provider acquisition strategies focus on creating low-friction entry points for healthcare institutions of various sizes. Small and medium-sized medical institutions can begin with a minimal commitment through a pay-per-use model for basic AI diagnostic support, while larger institutions can deploy comprehensive solution suites incorporating tokenization and healthcare payment functionality. Implementation support includes remote training, technical assistance for medical device integration, and ongoing performance monitoring to ensure positive clinical outcomes.

Distribution channels combine direct engagement and technical integration through existing healthcare information systems and medical imaging equipment providers. By developing plugin functionality for widely used healthcare software systems, BTT reduces implementation barriers and accelerates time-to-value for participating institutions. Strategic partnerships with medical device manufacturers enable hardware-level integration, creating seamless workflows in existing healthcare environments.

Educational initiatives form another key component of market development, with BTT offering continuing education certification for medical professionals who complete training on healthcare AI-enhanced diagnostic protocols. These programs enhance clinical decision-making capabilities while building acceptance of BTT's technical approach. Regular medical symposiums, webinars, and regional user groups create global healthcare community engagement that drives adoption through peer recommendations and shared experiences.

A structured referral program incentivizes existing users to introduce BTT to peers, with rewards distributed in BTT tokens based on successful implementation and usage milestones. This program has proven particularly effective, with 45% of new institutional acquisitions currently generated through healthcare peer referrals rather than direct marketing efforts.

Token Economics and Resource Allocation

The BTT token serves as the fundamental unit of value exchange within the ecosystem, designed with careful consideration of economic incentives, regulatory compliance, and sustainable growth. The token economic model balances the interests of all stakeholder groups while creating mechanisms for long-term ecosystem development and stability.

Token Utility and Value Drivers

The BTT token integrates multiple utility functions that drive intrinsic value through actual ecosystem usage rather than speculative interest. Primary utility functions include:

Computational resource payment for AI services, with healthcare providers using BTT to access diagnostic and analytical capabilities through the decentralized network. This creates continuous token liquidity, with providers purchasing tokens to gain service access while computational contributors receive tokens for providing resources.

Governance participation rights that enable token holders to influence ecosystem development decisions, technical standards, and resource allocation priorities. This utility becomes increasingly valuable as the ecosystem matures and governance progressively decentralizes according to established timelines.

Staking mechanisms for network security and prioritization, where token holders can stake BTT to receive priority service levels, reduced fees, or enhanced features across various ecosystem components. This creates token demand from active ecosystem participants while reducing circulating supply.

Reward distribution for beneficial behaviors, including computational resource provision, patient health activities, ecosystem development contributions, and community governance participation. These reward mechanisms align economic incentives with activities that enhance the overall ecosystem value.

Payment settlement through the PayFi network across the healthcare value chain, enabling near-instantaneous transaction settlement with minimized fees compared to traditional payment channels. This utility creates natural token demand proportionate to payment volume within the ecosystem.

Token Allocation Structure

The total supply of BTT tokens is fixed at 21 million tokens, with an allocation structure carefully designed to support institutional stability while ensuring sufficient tokens for network operations and community development.

Allocation Category

Percentage

Tokens (millions)

Vesting Schedule

Purpose

BitHive (BTT)

10%

2.10

36-month linear vesting, 6-month delay

Founding institution support, healthcare blockchain infrastructure, initial capital

China Digital Healthcare Group

0.84