Some may worry that tokenizing loyalty exposes a brand’s crown jewels to the world (and direct competitors): their customer data. Currently, the most commonly used blockchains are public blockchains that allow anyone to see transactions and account holdings. This is likely to change as the industry matures, data protection standards are developed, and zero-knowledge technology is advanced. Nonetheless, even now, in its current form, one could argue that the competitive risk presented by tokenizing loyalty is minimal for companies that serve their customers well. In the more well-known cases of vampire attacks, we see that these competitive strategies were often shortlived and minimally successful, with the majority of customers reverting back to the original platform.

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