Yesterday, Charles Hoskinson sent out a tweet acknowledging the publishing of a GitHub repository Kaleidoscope. Kaleidoscope is a protocol that is aimed at securing players in online poker. It aims to solve three key challenges in the online poker space. The first one is security. Existing security protocols for poker are not clearly defined. This makes them quite vulnerable especially now when security threats for online systems are becoming more complex. According to the IOHK team,
“The first step in designing Kaleidoscope was formally defining the security guarantees that a poker protocol should achieve. Since such formal definitions are missing from current literature, we provide the first security definitions for poker in the so-called simulation paradigm, which is the gold standard for cryptographic protocol security. Our security definitions take into consideration all phases of a poker game, modeling the security guarantees obtained for each of them and the conditions under which they hold. Namely, we model security against very powerful adversaries who can attack all but one player. This worst-case scenario also captures the case where many players in a game collude in order to cheat against one single player.”
The second challenge that Kaleidoscope addresses is that of efficiency. In seeking security, existing poker technologies rely on cryptographic techniques that are not only costly but make the games slower and less attractive to players. This is a drawdown that could be costing the gambling industry billions in potential revenues.
Thirdly, is the issue of payments. Unlike in existing poker technologies where there were no guarantees that the players get paid, Kaleidoscope ensures that players who win receive their rewards. This is the kind of efficiency that could open up the gaming industry to an even bigger market, all across the world.
Implications for Cardano (ADA)
Kaleidoscope is a big deal for Cardano blockchain because it could open up the adoption of the Cardano blockchain in the gaming industry. This is a multibillion-dollar industry and one that would have a huge impact on the intrinsic value of the Cardano blockchain. On top of that, Kaleidoscope, as a protocol, may have uses that go beyond the gaming industry. For instance, it could have uses in the finance world, especially in the derivatives market. This could significantly drive up the value of this blockchain considering that finance is an industry that is worth trillions and moves billions worth of value every day.
With such developments, there is a reason to believe in Cardano (ADA) and the IOHK team, in spite of the poor showing of the crypto market in 2018. It’s an indicator that once the market goes bullish, Cardano will be one of the biggest beneficiaries in the market.
Its fundamentals are getting stronger, which gives it a very high intrinsic value. Compared to 2017 when Cardano didn’t have half the accomplishments it has now, its value in the market could rise significantly in the next market rally. Past performance is never a guarantee of future performance, but the odds of Cardano outdoing its all-time highs are high. Once they work on everything on their roadmap, Cardano could easily be worth upwards of $10 a coin, in the future.