Why Disney Supports This Cryptocurrency And You Should Too | The motley fool
- on Aug 11, 2022
In mid-July it was announced that Polygon (MATIC 2.80%) would be a participant in waltz disneyit is (NYSE: DIS) Acceleration program. The Accelerator Program is a business development initiative designed to help grow innovative companies around the world. Companies selected for the program receive guidance and funding from Disney to help them further develop their business vision. Ultimately, Disney hopes that this investment in these companies will result in a product that also expands the Disney experience in new and innovative ways.
Based on the current round of members selected for the Accelerator 2022 program, it appears that Disney is targeting blockchain, augmented reality (AR), metaverse, non-fungible tokens (NFT), artificial intelligence (AI) and all Web3. Polygon was one of six members to be accepted into the program. This year’s other inductees specialize in different areas of Web3, but Polygon was the only blockchain network selected. It is not uncommon for former Accelerator program participants to be acquired by larger companies or even IPOs.
In a perfect world, this collaboration with Disney would make Polygon the basic blockchain on which Disney could build its Web3 businesses. Imagine a future where Disney releases collectible NFTs of movies and characters or an AR-based experience that Disney Park visitors can immerse themselves in. For this vision to come to fruition, there must be a basic blockchain on which transactions can be performed. All current signals point to Polygon playing this role.
For Polygon investors, it probably can’t get much better. With an investment not just of time, but of money and resources from one of the world’s most recognizable brands, Polygon could well begin its path to long-term success.
Polygon’s development continues in a bear market
Disney likely turned to Polygon because developers continue to create innovative solutions for its blockchain to become the first layer 2 solution for Ethereum. Using its sidechain technology, Polygon is able to offload some of the congestion and high fees that plague Ethereum when traffic is high.
Just a week after the Disney news, Polygon announced that it had taken another step towards achieving its goal of becoming the blockchain for all things Web3. Known as the Zero Knowledge Ethereum Virtual Machine (zkEVM), this solution will further reduce network costs and increase transaction capacity. It is believed that the introduction of zkEVM will reduce fees by around 90%. Even better, this new scaling solution should allow Polygon to process as many transactions as Visa. It is estimated that Visa can handle around 1,700 transactions per second, but with the introduction of zkEVM, Polygon developers believe they can reach 2,000 transactions per second.
With the release of zkEVM, Polygon could turn its goal of dominating Web3 into reality. Blockchain could be on the cusp of what Polygon co-founder Mihailo Bjelic has called “the holy grail of Web3 infrastructure.” In Bjelic’s eyes, a Web3 blockchain should have three main properties: scalability, security, and Ethereum compatibility. It looks like Polygon could have gone three out of three on that front now that zkEVM is live.
At just under a dollar today and down almost 70% from its all-time high, how could you not like Polygon in its current position? With the release of zkEVM developments and the collaboration with Disney, Polygon is laying the foundation for long-term success. Don’t be surprised if Polygon doesn’t come back on those prices.
RJ Fulton has positions in Ethereum. The Motley Fool holds and recommends Ethereum, Polygon, Visa, and Walt Disney. The Motley Fool recommends the following options: January 2024 long calls at $145 on Walt Disney and January 2024 short calls at $155 on Walt Disney. The Motley Fool has a disclosure policy.