Why Disney Is Backing This Cryptocurrency And You Should, Too

In mid-July it was announced that Polygon (MATIC -2.64%) would be a participant in Walt Disney's (NYSE: DIS) Accelerator program. The Accelerator program is a business development initiative designed to promote the growth of innovative companies from around the world. Companies selected for the program receive guidance and funding from Disney to help further build upon their business vision. Ultimately, Disney hopes that this investment in these companies will result in a product that further expands the Disney experience in new and innovative ways, too.

Based on the current round of members selected for the 2022 Accelerator program it looks like Disney has its sights set on blockchain, augmented reality (AR), the metaverse, non-fungible tokens (NFTs), artificial intelligence (AI), and everything 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 isn't uncommon for past participants of the Accelerator program to be acquired by larger companies or even go public on the stock market.

In a perfect world, this collaboration with Disney would result in Polygon becoming the base blockchain for Disney to build its Web3 enterprises on. 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 needs to be a base blockchain on which transactions can be made. All current signals point to Polygon serving that role.

For investors in Polygon, it likely can't get much better. With an investment of not only time, but also money and resources from one of the most well-known brands in the world, Polygon could just be starting its path to long-term success.

Polygon's development continues in a bear market

Disney likely tapped Polygon because developers continue to build innovative solutions for its blockchain to become the premier Layer 2 solution for Ethereum. With 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 has made another stride to fulfill its goal of becoming the blockchain for all things Web3. Known as 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 roughly 90%. Even better, this new scaling solution should enable Polygon to process as many transactions as Visa. It's estimated that Visa can handle about 1,700 transactions per second, but with the introduction of zkEVM, Polygon developers believe they can hit 2,000 transactions per second.

With the release of zkEVM, Polygon might be turning its goal of dominating Web3 into reality. The blockchain might be on the verge of accomplishing what Polygon co-founder Mihailo Bjelic called "the holy grail of Web3 infrastructure." In Bjelic's eyes, a Web3 blockchain must have three major properties: scalability, security, and Ethereum compatibility. It looks like Polygon might have gone three for three on that front now that zkEVM is live.

At a price just under a dollar today and down nearly 70% from its all-time high, how could you not like Polygon in its current position? With the developments of zkEVM being released and the collaboration with Disney, Polygon is building a foundation for long-term success. Don't be surprised if Polygon doesn't look back from these prices.

This article originally appeared in The Motley Fool.

RJ Fulton has positions in Ethereum. The Motley Fool has positions in and recommends Ethereum, Polygon, Visa and Walt Disney. The Motley Fool recommends the following options: long January 2024 $145 calls on Walt Disney and short January 2024 $155 calls on Walt Disney. The Motley Fool has a disclosure policy.