The Role of Phone Numbers in DeFi vs. CeFi

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shapanwwuopi
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Joined: Thu Dec 26, 2024 5:57 am

The Role of Phone Numbers in DeFi vs. CeFi

Post by 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.
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