The Role of Phone Numbers in DeFi vs. CeFi
Posted: Mon May 19, 2025 4:35 am
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.
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 regulationsDeFi (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 lostWhy 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.