Welcome to the Paradise paradox I want to talk to you today about cryptocurrency- about a particular cryptocurrency which I find very intriguing and actually I've been obsessing over it this last week It's the cryptocurrency that's got me most interested most excited about crypto since i first heard about Bitcoin

So I'm talking about Dash I'm going to tell you a little about the governance structure and user experience and the economic incentives that are part of Dash Full disclosure: I do own a reasonable chunk of Dash and the reasons i do what i'm going to present to you here have I'm not trying to give you financial advice and not trying to tell you what you should do with your money but i'm going to show you my thinking process in what's going on here So let's talk about a few of the problems with Bitcoin So of course we all love Bitcoin – it's amazing its innovative it's incredible technology

When I first heard about it I thought "holy shit this is going to put a big challenge to the big banks" but unfortunately where you know [eight] years on and it still hasn't done that Here are some of the reasons it has not done that Bitcoin has terrible user experience starting with the addresses who really wants to type in 34 character string of alphanumeric characters that doesn't make sense to anybody that looks like a computer had an error nobody wants to type that in when people tell me how but you don't really use and you don't have to remember it you just copy and paste it well why would I want to copy and paste that I don't want to copy and paste 187254 or whatever to get to Google – I don't want to type in an IP address i want to just type in the name something which sounds friendly is easy to remember Then we have this problem of security so you have to generate your new addresses every time you receive money so you can try to cover your tracks or people don't really know who you are or something like that you get paper wallets Trezor well to use PayPalI don't need to use a Trezor I don't need to use a paper wallet – I don't even have to be all that security conscious to use PayPal or a credit card it just kind of works it's relatively simple it's very simple compared to Bitcoin so why what why do I want to have to be a security nerd – most people don't – most people just want something that works The other thing is making transactions so I'm not a noob at Bitcoin i've been using Bitcoin for about six years now but yesterday when I made a transaction I made the simple error of forgetting to check the transaction fee so it sent with 13 Satoshis per byte or whatever the transaction is still processing waiting at the end of the queue, and we have about 30,000 40,000 unconfirmed transactions as I speak That's a problem and people say well that's not really a problem I mean that just indicates that people want to use the service that indicates demand well it does indicate demand but it also indicates a scalability problem it indicates people have made transactions and they're not getting through so these kind of glib responses like ah well you just need to put a higher transaction fee but that's just like bidding it up like an auction like everybody is just going to keep increasing their transaction fees – that's a terrible idea That's not a solution so we see these unconfirmed transactions rising peaking higher and higher at 50,000 60,000 unconfirmed transactions that is not good That is a problem and the block size debate rages on and people tell me AH well when SegWit gets installed when segregated witness gets implemented well that's going not going to be a problem anymore and I say well how long will that take when will it come in when will they get it? When will they implement segregated witness? and of course they don't know because nobody knows because there's no clear roadmap there's no governance structure That is a problem

Nobody knows when the problem is going to get solved that's the real problem another problem is the funding where does the Bitcoin dev team get its funding? They get it from several sources MIT media labs digital currency initiative, Blockstream, Chain Code Labs incorporated, Ciphrex, the Chinese exchange BTCC and others so several sources – Do all of these sources have bitcoins best interests at heart? we don't really know Even if we assume they do well what's stopping an NSA funded company coming in and saying hey we would like to help you improve Bitcoin – here is some several hundred thousand dollars We don't know what's going to happen with that We don't know if these people have Bitcoin's best interests at heart So that introduces this key central point of failure now I know some people will just say well Bitcoin has the greatest market cap Bitcoin has the greatest network effect – among crypto currencies well it's great but we're not looking at what has the greatest network effect today we're not looking at what has the greatest market cap today because if we wanted to do that we would look at Visa or Mastercard or American Express and say well the debates over i guess they have the greatest network effect so we can all just give up and go home no we want to look at what's gonna happen in the future we want to look at the existing trends and how they're gonna intertwine what is the acceleration and velocity that is going to change these things over time so in five or ten years which of these is going to be best which is going to come out on top Now let's talk about Dash's solutions so the problems with Bitcoin with the user experience with the fucking wallet that looks like it was designed in visual basic in 2008 or whatever they're still there they've being there for years they haven't changed there's been no significant progress on that for many years – whereas with Dash they're actively working on user experience so by the end of this year they expect to release Dash Evolution which is going to be a different system going to be a wallet where you can login anywhere from your phone from your computer from somebody else's computer similar to PayPal – you don't need to have your wallet just accessible in one place and you can login with the username a human-readable username and user name that looks like a normal word or phrase that some human would actually use instead of your computer sneezing

Likewise when you send addresses when you send transactions to people you're going to use something which looks like it's readable by a [human] then we have the solutions when it comes to scalability so Dash has already addressed the block size debate even before the amount of transactions necessitated it the masternodes voted and they came to a consensus saying yes let's increase the block size when it comes to it let's increase it to two megabytes when it's necessary so the thing is about governance Bitcoin has no formal governance structure – Dash does Masternodes can vote on whether they like something or not With Bitcoin to have to hard fork

With Dash they don't because they can find out what the consensus is and then they can move the project in that direction now with the economic incentives with Bitcoin only miners get paid from the network so nodes don't get paid even though they're very important in the maintenance of the network and the dev team doesn't get paid by the network even though it's probably the most important thing so with dash what's the solution forty-five percent of the new coins created go to miners, forty-five percent of the new coins created go to masternodes who hold thousand Dash they're invested in the network and they have this collateral and they also get the Voting Rights like i mentioned and they help process the transactions to make them private using PrivateSend then the final ten percent or up to ten percent actually goes to the Treasury which can be used to pay the dev team can be used for marketing and the future maybe you'll be used to set up call centers have conferences have concerts promoting Dash so when it comes to bitcoin is not a lot of economic incentive when it comes to trying to promote it except for the small amount of people who want to be advocates and trying to increase their own position or try to release this technology to people so more people know about it that's a small incentive compared to Dash which has a big incentive big economic incentive because they want to pay people who are going to create value and increase the value of the network so the masternodes we know they're already invested and the masternodes say hey is this proposition going to increase the value of the network we know they have at least some interest in improving the network because they have this thousand dash and therefore we know that the people who submit proposals and get approved are more likely to be people who have interest in maintaining and increasing the size of the network so that is my case why Dash actually will be better in the long run compared to Bitcoin why it's more likely that Dash will reach mainstream adoption first In summary Dash is focused on user experience, Dash has addressed the block size problem and can address it better in the future if better ways come up because it can vote on it and Dash has economic incentives to improve the network based on people who are already invested and people who want to get involved and increase the value of the network Thanks so much for listening – I'll put a Dash address below in the video Xo5fNe1fQGxDYAxKSqBoSqEzZYkCMTCZyB youtube if you want to contribute or if you enjoyed the video and I hope to see you at Anarchacapulco starting on February 24th this year so i hope to see there in Acapulco Mexico lots of love see you soon peace