The Role of Phone Numbers in DeFi vs. CeFi

[shapanwwuopi]

One of the most significant divides in crypto is between centralized finance (CeFi) platforms like TokoCrypto and decentralized finance (DeFi) protocols such as Uniswap or MetaMask. The presence — or absence — of user identification systems like phone verification is a key differentiator.

CeFi (e.g., TokoCrypto):
Requires phone and ID verification (KYC)

Can freeze compromised accounts

Uses phone for recovery, alerts, and 2FA

Operates under lbank user phone number list regulations

DeFi (e.g., DEXs, wallets):
No phone number, no KYC

User holds all responsibility for security

Anonymous interaction with smart contracts

No password reset or support if funds are lost

Why this matters:
In CeFi, phone numbers offer a balance of security and user convenience. While DeFi is powerful, it’s unforgiving if you lose access to your private key or wallet. New users benefit from CeFi’s structure and phone-based recovery before diving into DeFi's self-sovereignty.