What is Walrus (WAL)?

Walrus (WAL) is a decentralized storage and data availability protocol built on Sui. It allows users to store and retrieve large files (“blobs”), such as videos, images, PDFs, AI models, and blockchain history, in a way that is secure, efficient, and scalable. Unlike traditional cloud storage services like Google Drive or Amazon S3, Walrus operates on a network of independent storage nodes rather than relying on a central authority. This ensures that files remain available even if some nodes fail.

Walrus aims to solve key issues in decentralized storage, such as high costs, slow speeds, and security risks. It uses advanced erasure coding and a unique algorithm called Red Stuff to make data storage more reliable and cost-effective. Additionally, Walrus leverages the WAL token, a cryptocurrency that powers its economy, ensuring that storage is affordable and that network participants are fairly rewarded.

Who Created Walrus (WAL)?

Walrus was developed by Mysten Labs, the same team behind the Sui blockchain.

What VCs Back Walrus (WAL)?

Walrus has attracted significant interest from major venture capital firms. The Walrus Foundation, the main entity behind the protocol, raised $140 million in funding from some of the biggest names in crypto investment. The funding round was led by Standard Crypto, with additional investments from:

● Andreessen Horowitz (a16z)

● Electric Capital

● Franklin Templeton Digital Assets

The total valuation of Walrus at the time of the funding was $2 billion, signaling strong confidence in its potential to disrupt the decentralized storage market.

How Walrus (WAL) Works

Walrus is designed to be fast, secure, and scalable. Here’s a step-by-step breakdown of how it works:

1. Uploading Data

When a user wants to store a file on Walrus, they upload it to the network. Instead of storing the full file on a single node, Walrus breaks it into smaller pieces and distributes them across multiple storage nodes.

To increase security and efficiency, Walrus uses a unique encoding algorithm called Red Stuff. This method splits data into “slivers” to reduce storage overhead while maintaining fast access and redundancy.

2. Storage and Proof of Availability

Once the data is stored, Walrus ensures it remains available by using proof-of-availability mechanisms. These randomly challenge nodes to confirm that they still hold the data. If a node fails too many challenges, it is penalized.

Walrus uses Delegated Proof of Stake (dPoS) to manage storage nodes. This means that only trusted nodes with a stake in the network can participate in storing files.

3. Accessing Data

When a user wants to retrieve their file, Walrus reassembles the data from multiple nodes and delivers it through a Content Delivery Network (CDN) or cache. This ensures quick access even for large files.

Walrus can be accessed through:

● Command Line Interface (CLI) – For developers and advanced users.

● Software Development Kits (SDKs) – For apps and dApps.

● HTTP Web Technologies – For traditional web access.

This flexibility makes Walrus compatible with both Web2 and Web3 applications.

4. Paying for Storage (WAL Token)

Storage on Walrus is paid for using its native cryptocurrency, WAL. Users pay upfront to store data for a set period, and the WAL tokens are distributed over time to storage nodes as payment.

To prevent sudden price fluctuations, Walrus is designed to keep storage costs stable in fiat terms.

5. Incentives and Governance

The WAL token also plays a role in network security and governance:

● Storage nodes must stake WAL to participate.

● Nodes with poor performance get slashed (lose part of their stake).

● Governance decisions (such as protocol upgrades) are made through WAL token voting.

Additionally, Walrus has a deflationary mechanism where tokens are burned through penalties and slashing. This helps increase the value of WAL over time and encourages responsible staking.

WAL Goes Live on Bitget

Walrus is a carefully designed protocol that balances affordability, security, and scalability. By leveraging Sui’s blockchain, advanced storage techniques like Red Stuff and erasure coding, and an incentive-driven WAL token economy, Walrus offers a faster, cheaper, and more reliable alternative to traditional blockchain storage.

With backing from top-tier investors like Standard Crypto and a16z, Walrus is set to disrupt the decentralized storage market and bring true Web3 storage to the masses.