What are the potential pitfalls of creating a referral system with multiple levels in PHP?

Potential pitfalls of creating a referral system with multiple levels in PHP include complexity in tracking and managing referrals, potential for abuse or fraud with multiple levels, and increased server load due to multiple levels of referrals. To solve these issues, it is important to carefully design and implement the referral system with proper validation and security measures in place.

// Example of a simple referral system with single level tracking and validation

// Function to validate referral code
function validateReferralCode($referralCode) {
    // Check if referral code is valid (e.g. exists in database)
    // Add additional validation logic as needed
    return true;
}

// Function to track referral
function trackReferral($referrerId, $referralCode) {
    // Track referral by storing in database
    // Add additional tracking logic as needed
}

// Example of using the functions
$referralCode = "ABC123";
$referrerId = 123;

if(validateReferralCode($referralCode)) {
    trackReferral($referrerId, $referralCode);
    echo "Referral successfully tracked!";
} else {
    echo "Invalid referral code.";
}