Crypto poker expanding
Decentralized poker games have often been speculated as one potential use case for blockchain technology, although both players and sites have been slow to adopt it. Soon, however, players will have two serious platforms from which to choose: CoinPoker and the soon-to-be-launched Phenom Poker.
CoinPoker, which is backed by Antanas “Tony G” Guoga, was launched back in 2018, but has recently hosted a series of high-profile cash games involving streamers such as Jonathan Little, JNandez, and KakiTee. The platform has seen a slight uptick in cash game traffic as a result, but still lags well behind traditional online poker giants like GGPoker and PokerStars and has failed to generate significant traffic in tournaments.
the app has signed a host of brand ambassadors to publicise the platform
The next contender on the block will be Phenom Poker, which is scheduled to launch this year. The app has signed a host of brand ambassadors to publicize the platform ahead of its launch, including Alec Torelli, Brian Rast, Ari Engel, and Ben Heath.
The site promises a host of features at launch, including variants such as stud and open-face Chinese poker, customizable 3D avatars, and a new ERC-20 token which will function as the centerpiece of the site’s rewards system.
What makes crypto poker sites different?
Both CoinPoker and Phenom Poker use blockchain technology to operate a decentralized random number generator (RNG). This method claims to improve transparency and security, and is a key use of blockchain technology for both platforms.
CoinPoker’s site states that “Our new, decentralized random number generator (RNG) software uses input from all players at a table to shuffle the deck, giving you the power to prove the fairness of the shuffle.”
our revolutionary RNG module is impossible to reverse engineer”
“Using the same cryptographic hash function used on the Ethereum network (KECCAK-256), our revolutionary RNG module is impossible to reverse engineer. This makes it possible to safely disclose information about the order of the deck, and boost transparency in online poker.”
Phenom Poker uses a similar decentralized model for its RNG, stating: “Essentially, this algorithm allows two or more players to play a game of cards together, each shuffling, dealing, and even discarding cards without the need for a trusted third party.”
Is crypto poker really decentralized?
These systems have not been without criticism, however, and are not truly decentralized since they do not take place entirely on-chain. One notable skeptic is Jason Mo, a well-known figure in both the poker and crypto worlds.
“[The] issue is that eth and evm chains are slow, and poker hands are quick. You can’t have all people send you encrypted data in real time. They notice this and then do everything off chain”, said Mo in one of several posts on X he made criticizing the platform.
“The problem is, this defeats the purpose of a decentralized shuffle: if you do it off chain you have to trust what happens off chain.”
there is a very big reason why poker sites don’t use this model”
“You have to trust them to execute the shuffle correctly,” Mo added. “If you do or not is another story, but assuming you do, the mental poker model is not needed and just adds plaintext attack risk… there is a very big reason why poker sites don’t use this model.”
Legal Issues of crypto poker sites
RNG is not the only issue that crypto poker sites may come up against. Mo had also previously criticized CoinPoker, drawing attention to the fact that it was unlikely to comply with money laundering regulations, which could pose future problems for the app. While the site has since published a Know Your Customer (KYC) policy, the “About Us” page on the website still advertises that transactions require “no KYC checks.”
While players in certain jurisdictions where online poker is illegal have long had plenty of offshore options to choose from which have remained online, such as America’s Cardroom and Bovada, directly promoting the site as KYC-free is another matter entirely. Phenom Poker is yet to launch, but the site claims it will employ a strict KYC policy, requiring proof of age and address.
Whether Phenom Poker will have any better luck than CoinPoker remains to be seen. The product certainly has a fresher, more modern-looking user interface, and has the backing of plenty of well-known faces in the poker world.
For now, however, neither site seems likely to seriously challenge the likes of PokerStars, GGPoker, and even offshore sites like America’s Cardroom. Building a player pool from scratch is no easy affair, as Phil Galfond already found out, and the fact that CoinPoker has been around for six years shows the need for patience. For Phenom Poker, time will tell.