Why aren't we seeing greater adoption of cryptocurrency technology? People bandy about different reasons why You hear everything from image problems like Mt

Gox and associations with Silk Road, to simple ignorance, as in, if people just understood how wonderful this technology is surely they would use it But none of these reasons are likely to be the true culprit There are actually two reasons why we're not seeing widespread use of cryptocurrencies The first is all crypto currencies face the chicken and egg problem Merchants don't want to accept a form of payment that very few customers use and customers don't want to use a payment system that hardly anybody takes

On the surface this seems like a really hard problem to solve and it is, but it has been solved before, and it's been solved in the financial services industry many times So what are the adoption factors in the financial services industry? And how do we stack up against them? The proven solution to the chicken and egg problem is the following: you need payments that are faster, easier, and more secure than the alternatives, and you need to provide switching incentives — usually doing so within a confined ecosystem Look at some examples of this, starting with credit cards Credit cards were faster, easier, and more secure than paying with a check or dealing with cash handling costs Credit cards incentivized switching by providing customers with grace periods and those addicting miles that we all have and use

PayPal solved the chicken and egg problem online by providing a faster, easier and more secure way to pay within the defined ecosystem of e-pay It was better than sending checks through the mail, and at the time, typing in your credit card information online was scary PayPal also provided switching incentives — twenty dollars just to sign-up — along with free person-to-person transfers They delivered real value to the customer So, how does cryptocurrency stack up against these adoption factors? Well Bitcoin and virtually every other cryptocurrency uses long cryptographic addresses and takes 10 minutes to confirm

There's no recourse if you make a purchase and the merchant doesn't deliver And it's one of the only payment systems in the world where the consumer — who hates paying fees to spend their money — is the one responsible for the fees On all three dimensions we're falling short So it's no wonder that consumers have not adopted cryptocurrency These are the rules and we're breaking them

The second issue is usability If you look at the early internet this is the first browser It's dominated by text and hyperlinks, maybe a couple of pictures Compare that with the internet of today — rich, interactive, customized for you We would never go back to that picture on the left after experiencing this

Almost every cryptocurrency wallet looks something like this It's not a rich experience, it doesn't deliver information relevant to the customer, you have to wait for the blockchain to sync before you can use it, and unless you want to use a centralized service and hand your Bitcoins off to somebody else, this is your experience and it's a pretty bad one We're eight years in, so the question is, "What will this look like in the future?" teehan+lax s is a design firms Back in 2006, they recognize that the internet was starting to change See between 2002 and 2006 functional design began to enter into the marketplace

teehan+lax had a hypothesis that if they invested in companies that focused on the user experience, those companies would outperform the rest So they picked 10 companies that they thought delivered great user experiences, and not all of them were even online companies There was an apparel company, an airline, an insurance company, and a brick and mortar retailer This doesn't sound like a great investment thesis on the surface knowing what happened since, but here's what did happen — oh and by the way, this was a time when there were no iPhones, there are no Google Maps, no Google Docs, and the number one social networking site was mySpace There was no way teehan+lax could have known what was going to happen

And here's what did: over the next ten years their chosen companies saw a five hundred percent return Five times what the market delivered User experience matters And cryptocurrency is not delivering it as an industry So what is Dash doing differently? How are we addressing this problem? We're creating a cryptocurrency that has instant transactions — that will send your shipping information through the network at the press of your thumbprint , on your phones thumbprint-reader authorizing payment in a fast and easy manner

We're adding security by introducing vault accounts We already have balance and transaction privacy, and we're introducing purchase protection These address the need to be faster easier and more secure And we have not forgotten about switching incentives We're developing loyalty programs, interest-bearing accounts, and free payments person-to-person

And we're doing it all in a way that will deliver a design and experience that is consistent with other services PayPal does a wonderful job of this and their subsidiary Venmo — if you're a millennial chances are you have it in your pocket — these are the types of experiences that we want to create In order to do this, cryptocurrency requires a rearchitecture, and a massive one at that, so we've been working on it for a couple of years already In our first phase we delivered high-value features That is, instant transactions and privacy features

In order to do this we developed a new layer to our network called masternodes that deliver these services to our users We then introduced governance and a funding model that allows us to be sustainable We're non-ICO so our funding is continuous Paid for directly by transaction fees and our block reward In the second stage we're introducing a number of firsts

On February fifth specifically These are the technical foundational elements required to deliver the type of user experience that we've defined We're introducing DashDrive — the first decentralized object-oriented relational database This will allow our network to serve up content very, very quickly We're introducing WatchDog — the first proof-of-service implementation

And we're introducing Sentinel, which is a programmable, object-oriented governance system that will allow us to scale, creating new ways of resolving questions on the network with continued self-funding And now we're about to enter phase three, which we've been working on for quite some time What you see here are all end-user features You'll be able to login with a username and password You'll have full remote access from any device, leaving behind the static wallet on a single device problem

Instead, you'll have an account that can be accessed from your tablet phone or desktop We're introducing a merchant marketplace to help bring consumers and merchants together When they can easily find each other they can easily engage in commerce We're introducing the first decentralized API, meaning merchants will be able to integrate with our network by simply copying and pasting a snippet of code into their checkout screen And we're working to offer security enhancements, ways to protect the consumer from both theft and unfulfilled purchases

Dash Evolution will look familiar to you You're going to be able to create contact list of your friends, favorite the stories you've interacted with, and sign-up for subscription type payments that automatically debit your account Your information will be viewable in a clean format This user experience will of course be consistent for desktop It's all the information you want and none that you don't

How is Dash doing this? As mentioned before, we have the first decentralized government system We spent a lot of time creating it because we recognize that in virtually all other cryptocurrencies a hundred percent of the block reward goes toward miners Why is that when mining is only one need of a network? Don't we need developers? Don't we need marketing? Don't we need support? What about a call center where customers can call in and get some help? So we allocate only forty-five percent of our block reward to miners We allocate another 45% toward infrastructure, that is, the nodes that provide full copies of the blockchain, which gives us a high-speed and robust network And the final ten percent is set aside for what we call our treasury

The treasury funds anything else the network needs, including the slides used in this video At this time our annual treasury funds total over 12 million dollars To put that in perspective, that's about three times what the Bitcoin foundation pulls in This means we develop code faster, and as the value of a Dash grows we can then afford to make more investments to , you guessed it, make a Dash even more valuable

If we were to ever reach Bitcoins market cap our annual funding would be a $170 million per year That's money that could be put toward a Super Bowl ad We're allocating treasury funds through a decentralized governance model anyone who starts a masternode — the only prerequisite being putting up a thousand Dash — can vote on these allocations Masternodes are people who are stake in the outcome of our network so they're the ones who decide how funds get spent This makes us the first decentralized autonomous organization or DAO

You probably didn't know that because we don't have problems that make the news The Dash DAO has been functioning since 2015 and the growth has been astounding These are the integrations and partnerships that we signed up in 2016 alone It's worth mentioning that Purseio says we're the number one altcoin used to buy things on Amazon

That speaks to the usefulness of what we're creating in terms of our market cap, Dash has grown at a phenomenal pace We've outgrown Bitcoin by at least double its growth rate, as well as the entire altcoin space every year we've existed And we're on pace to do it again this year Our key performance indicators are off the chart

Our daily trading volume is up 1700% year-on-year in the last quarter And this quarter it's up another four times from the previous quarter We're beginning to receive a lot of attention In fact, if you look back over the past 24 months there are only four coins that have consistently remained in the top 10 There have been a lot of hypes — a lot of coins that show up and then go away — the ones that haven't left however, are, Bitcoin, Ripple, Litecoin and Dash

That's it You see a lot of other coins come and go but we're consistently delivering innovation and are consistently being rewarded for it A common question we get is, "Well, Dash sounds great, but aren't the network effects of market leaders insurmountable?" Our response is, "Absolutely not" Even if you at markets where network effects are extremely strong, history would suggest otherwise For example, look at Betamax vs VHS

Betamax was first-to-market by two years They had better picture quality, better sound, and better image stability But VHS came along with the one feature that people actually cared about –they delivered a 2-4 hour recording time Now you could actually record the baseball game or not have to switch the cassette out while watching a long movie In the financial services space Diners Club was first-to-market by eight years over Visa

Bank of America launched the Bank of America card, which was the precursor to Visa in Fresno, California — a concentrated market — and they focused on a general-purpose card, whereas Diners Club had been focusing on exclusive diners in major US cities So Visa executed in a different way saying, people don't like carrying around all of these different store cards, we're going to create a general-purpose card and find a way to reach penetration So history suggests that there are ways to overcome network effects The cryptocurrency market i's likely to end up being more like Visa, MasterCard, and American Express We're going to see multiple blockchains come to dominate the space with different use cases and different priorities in terms of what their optimizing for their customers

Even so, what are "network effects" anyway? Network effects are nothing more than positive feedback loops The more merchants you get, the more customers you get And vice versa We've designed our entire system to have a lot of network effects Take special note of our budget system — that is, our treasury

The treasury's network effect manifests itself in the investments we make The investments build our ecosystem out And as the ecosystem gets built out, Dash becomes more useful to our users We then attract more capital and as we attract more capital you guessed it, our treasury gets bigger This effect bleeds out into our performance and delivery, as well as our focus on the customer

Our treasury funds and the ability to allocate them via decentralized governance is one of the most powerful things Dash has going for it So what's next? We're moving into the Arizona State University SkySong Innovation Center on February 1st, and are very excited about it On February 5th we're rolling out Sentinel, which has the foundational elements mentioned earlier that are needed to execute our long-term vision We're integrating with Wall of Coins which will allow users to purchase Dash with cash at 120,000 locations in the US as well as an 11 other countries We're hosting our fourth quarter and end-of-year conference call on February 16th

We're the only cryptocurrency to hold a quarterly conference call for our investors We're very transparent about our funds, how they're being used, what our plans are, and you're invited to listen in on the call to learn more And finally Dash Evolution We'll have an alpha release out in the middle of this year and we're aiming to complete it for public release by the end of the year Learn more about us at Dash

org and thanks for watching [Music]