What potential pitfalls should be considered when using on-the-fly thumbnail generation in PHP, especially in terms of server resources and performance?

When using on-the-fly thumbnail generation in PHP, one potential pitfall to consider is the strain it can put on server resources and performance, especially if a large number of thumbnails are being generated simultaneously. To mitigate this, you can implement caching mechanisms to store generated thumbnails and serve them directly if they already exist, reducing the need for continuous generation.

// Check if the thumbnail already exists in the cache directory
$thumbnail_path = 'thumbnails/' . $image_filename;
if (file_exists($thumbnail_path)) {
    // Serve the cached thumbnail directly
    header('Content-Type: image/jpeg');
    readfile($thumbnail_path);
    exit;
} else {
    // Generate the thumbnail and save it to the cache directory
    // Your thumbnail generation code here

    // Save the generated thumbnail to the cache directory
    imagejpeg($thumbnail, $thumbnail_path);

    // Serve the generated thumbnail
    header('Content-Type: image/jpeg');
    imagejpeg($thumbnail);
    imagedestroy($thumbnail);
    exit;
}