Limitations of Centralized Verification Systems

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Centralized phone verification systems, while widely used, face significant limitations in terms of security, privacy, and scalability. These systems depend on a single authority or a network of centralized servers to authenticate and store user data, creating attractive targets for cyberattacks. Data breaches in such systems can lead to massive leaks of personal information, including phone numbers and verification credentials.

Additionally, reliance on centralized databases raises phone number list concerns over user privacy. Users often have limited control over how their data is stored, used, and shared. There is also the risk of data manipulation or censorship, which can undermine trust in verification processes.

Another challenge is the scalability of centralized systems. As the number of users grows exponentially, maintaining and securing centralized databases becomes increasingly complex and costly. This bottleneck can lead to delays, increased operational costs, and reduced reliability in verification services.

Furthermore, these systems are vulnerable to fraud techniques such as SIM swapping, where attackers hijack a user's phone number, or man-in-the-middle attacks intercept verification codes. These vulnerabilities have prompted the search for more resilient, decentralized verification solutions powered by emerging technologies like blockchain.