What is behind Disney’s interest in crypto?

When Disney (HAZE 1.58%) announced it Polygon (MATIC 8.35%) was supposed to be part of the Disney Accelerator program, it seemed like an odd mix. Disney is an old-school media company, and Polygon is one of the largest cryptocurrencies, by market capitalization, today.

The battle may seem odd, but upon further review it reveals a lot about how both companies see the future.

Disney is very interested in advanced technology, Web3 and the metaverse

The goal for Disney is simple: It wants to make connections with, and invest in, young companies that are building the technology of the future. Metaverse, augmented reality and virtual reality have been a focus for some time.

Past Disney Accelerator partners include Epic Games, The Void (VR experience business), Littlstar (360 videos) and more.

Disney has a long history of using advanced technology in movies and rides, and the Accelerator program is a great way to stay ahead of the curve and maybe get some upside in an investment round as well. Polygon seems to fit that shape.

Polygon is very interested in being taken seriously

Polygon may be a well-known cryptocurrency, but as a blockchain it is not gaining much traction. It is what is known as a Layer 2 blockchain, which operates on top of Ethereum‘s Layer 1. The idea is to scale Ethereum and lower costs, but the trade-off is that transactions are extremely slow, and developers haven’t moved to the blockchain very quickly.

There are approximately 225,000 active wallets on Polygon compared to 800,000 on Solana (SUN 4.62%), another chain built for scale. A large majority of transactions on Polygon are transfers of stablecoins because it is a cheaper way to move around than operating on Ethereum’s Layer 1 network. There are no big metaverse or NFT investments on Polygon and the market seems to be shifting to Solana.

So, how does a blockchain like Polygon gain traction with metaverses and other creative projects? Why not join Disney’s Accelerator? The program gives Polygon the ear of Disney executives and potential creatives in the industry, so it’s worth joining.

Who will be helped by Disney’s crypto exploration?

It is easy to dismiss Disney’s Accelerator program and Polygon’s involvement as a small impact project. But I keep going back to Disney’s early use of virtual reality and animation tools, with the ultimate goal of making rides and movies better. For Disney, technology has been a means to an end, not the end in itself.

Will we see Disney start testing how it can use crypto in theme parks or a metaverse that we know it’s building? Disney could sell tickets or admission to rides as non-fungible tokens at theme parks on the Polygon network. It can also sell digital assets to people in the metaverse with NFTs.

As a Disney investor and a believer in blockchain disruption, I am encouraged that Disney is exploring crypto. We don’t know where it will lead, but sometimes it’s a valuable exercise to explore something.

But I also wouldn’t be surprised to see some experiments in crypto before too long. Disney wants to lead in the metaverse and media creativity, and this could be a low-risk way to get there before the competition.