I've really only skimmed this - I would say that I don't like:
* reputation systems
* banning
* identity verification
All of these are incompatible with an anonymous game system. Sybil attack is the biggest problem with decentralised poker - perhaps something like requiring each player to produce a continuous stream of POW, using something like a variance free hashcash could work.
Sorry in advance.. I am long winded times two
Also the grammar... I am so long winded that it is a PITA to go back and fix sentences after spitting out my thought process in writing.
I understand your dislikes of my design, as I share them... along with freezable and reversible poker chips. To be clear, there are a few things that I do not like about the design but unfortunately I do not know of a better solution. Decentralized poker solves a lot of problems with centralized poker, but at the same time has its own issues. I am trying to mitigate those issues the best I can by making compromises. Fully decentralized anonymous poker is impossible today. Maybe some time in the future when the technologies advance a little. To make something mostly decentralized today will take making compromises. It will be interesting to see if something like this catches on in the poker world. Will people like "mostly decentralized" poker and all of its demons, or centralized poker and all of its demons? I hypothesize we can get them to like "mostly decentralized" poker better if we can mitigate the compromises. If you have a better idea please tell me!! I have been wracking my brain over this stuff off and on for years now, and at this point this is the best solution I can think of. Maybe the whole design is just bad and I'm an idiot, but it doesn't really seem like the other poker project (Pangea Poker) has thought all this through completely, and Pokereum has a version of online poker that no one will want to play. There is an opening for Bitshares to come in to this online poker space early with a superior product.
I considered resource intensive identities when first starting to think about how decentralized identities could be done. I came across a research paper that I though was brilliant that gave me the idea and I was certain that was how decentralized identities should work. However, I eventually came to the conclusion that it could be too easily gamed. Those with access to botnets or powerful computers would be able to generate many computationally intensive identities cheaply, and there would be no way to tell who generated their identity honestly versus someone who used nefarious means to generate their identity to game the identity system. Unfortunately, all types of decentralized identity/trust/web of trust/reputation systems/resource intensive identities/etc. all are subject to Sybil attacks. Even my certificate authority idea in which CA's manually verify users' identities and issue identity hashes could be gamed. I just think it is the least game-able option to establish identity. Legacy centralized poker networks verify identity that way for a reason... because it is the most effective in combating multi-accounting.
You will still be anonymous to everyone but the CAs, and I proposed all CAs to sign a contract when they go into business with the block chain that requires them to do the following things. Require them to make their identity public before the network accepts their certificates as being valid. I proposed they not be able to accept an unencrypted identity file, that they not unencrypt files on anything but an offline computer, and that they destroy the files immediately after creating a user's identity hash. If the CAs follow the best practices, the ones decided by the community and put in the contract, then there is little chance that any identities would ever be exposed. Unless a CA breaks a contract (which is totally possible), then all identities could be publicized. I suggest very strict regulations and governing of CAs, including making them be public figures and publicize and prove their identities in the case they do break their contracts. Players would at least have a means of restitution available... a classic class action lawsuit or vigilante justice (kind of joking but not at the same time, haha.)
I am honestly more worried about the integrity of the identity hashed more than CAs getting compromised. At this point an identity string looks something like this: “Full name, Date of Birth, Sex, Eye Color, Physical Address, Country” and that is put into a standard (all CAs will use the same function) one-way hash function. It is possible someone could know someone's Full name, Date of Birth, Sex, Eye Color, Physical Address, and Country, and therefore reveal their identity publicly or use this information to their advantage in some way. Celebrities or public figures would be especially prone to this. However, if you put something too random in the identity string then you can't match someone's identity by using multiple CA's. Someone could choose a password and give a different CA a different password, still have their identity documents examined, and still get different identity hashes. CA's could share the passwords and require the same password from each user, but then the passwords could be leaked/shared and we'd back at square one with revealed identities. So, do we sacrifice a little anonymity (of which there is little in the online poker world minus one currently existing poker site), or do we sacrifice security? IMO security issues are more major than anonymity issues, especially in a decentralized online setting.
As far as the reputation system. Did you read the part about "Poker Chips" and "Risky Chips"? I feel like some sort of reputation system is necessary for the trading that will be going on in between those two SmartCoins on the decentralized ledger. Silk Road, Localbitcoins, etc... have mostly proven reputation systems work for these kinds of transactions. Without a reputation system I can't imagine there being hardly any liquidity in the Poker Chips / Risky Chips market. Who would speculate on Risky Chips if they were buying from anonymous strangers with no reputation system in place? I tend to think nobody.