The secret behind the technology is to compare multiple frames of the same scene to help get a clearer picture of what's being shown. If an image is only in one frame, MotionDSP's technology can't do much about it.

The entire thing is server driven and the company is hoping to offer it as a white label to other companies (think YouTube). Given the company is partially funded by the CIA's venture group, you can guess there's even BETTER versions of the technology coming down the line.

Based on the demonstration, this is a CDN that could make some waves, delivering high-res video over a standard Internet connection very efficiently. And, they're sitting on Amazon's Web Services Network, lowering their need for servers and other capital equipment things. Digital Fountain is differentiating itself from Limelight and Akamai by claiming they need far less server deployments to reach the edge. For instance, the demonstration was pulling from 12 servers, though that number can vary.

DF Splash will start by serving up the QuickTime H.264 format because it does high-res compression very well and it can extend down to the mobile and set-top box platforms. Viewers just need a browser plug-in to watch the videos. Given that Adobe is an investor and the fact that Adobe is going to be supporting H.264 shortly, my guess is this will be available for Flash sooner than later.