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(There are better counterexamples but I don't think it's relevant.)

London's codes aren't "virtual", they stand for North, North East, East etc.

I think the British system is a bit more human friendly, as the letters are usually mnemonics for large towns or areas, and just 5-7 characters is specific to about 20 addresses. (It can be a single business within a building, or apartments on 2-3 floors.) However, just like ZIP codes the boundaries don't align to political regions.

The over-verification problem would be surprising in Britain due to the codes being very specific, the whole address is easily verified. Usually this works the other way around — you type in the postcode first, and select from the 20 or so full addresses within it.

The most common problem is new addresses not being in the database used by a website, and them not allowing manual entry.



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