Walrus: Building a Decentralized Data Layer for the Next Phase of Web3

As Web3 enters its mature phase, the limitations of traditional blockchain infrastructure are becoming increasingly apparent. Blockchain is very strong in achieving consensus, executing smart contracts, and processing transactions, but it was never designed to store large volumes of data. Meanwhile, modern decentralized applications rely not only on transactions but also on media files, application states, AI data, system logs, and user-generated content. #Walrus was created to address this core gap by building a decentralized, scalable, and secure data storage and availability layer, specifically designed for the Web3 ecosystem. Walrus Does Not Replace Blockchain – Walrus Supplements Blockchain

@WalrusProtocol is not intended to replace blockchain but to operate alongside it within a modular architecture: Blockchain focuses on: SecurityConsensusExecution of contractsPayments and settlementsWalrus focuses on: Data storageData availabilityData securityDecentralized data distribution This separation allows the system to scale without reverting to reliance on centralized cloud providers— which pose risks of censorship, control, and single points of failure. Walrus helps Web3 maintain decentralization from the execution layer to the data layer. Data Ownership – Core Principle of Walrus In traditional systems, data is stored on infrastructure controlled by corporations. Access rights can change, content can be removed, and platforms can disappear at any time. Even many decentralized applications today still rely on centralized storage behind the scenes. Walrus replaces this fragile model with a protocol-backed system: Data under user controlAccess protected by encryptionOwnership verified on-chainIntegrity verified by algorithms Trust is no longer based on organizations but on open-source code and economic mechanisms. Walrus Architecture on Sui Blockchain

Walrus is built on the Sui platform, using Sui as the execution and settlement layer, while data is managed off-chain within a decentralized storage network. Sui is responsible for: Referencing data referencesVerifying ownershipChecking integrityManaging access rights Walrus is responsible for: Storing actual dataDistributing dataMaintaining data availability This modular design allows both layers to scale independently, creating a flexible, efficient, and future-ready system. Blob Storage and Erasure Coding – The Technical Heart of Walrus

Walrus employs a blob storage model combined with erasure coding: Large data is split into multiple fragmentsFragments are encoded with redundancyDistributed across multiple independent storage nodesData can be recovered even if some nodes go offline Compared to simple replication, erasure coding significantly reduces storage costs while ensuring high durability and availability. As a result: Superior loss resistanceLong-term storage efficiencySustainable scalability Privacy Designed from the Ground Up In Walrus, privacy is not an option—it’s the foundation. Data is encrypted before uploadStorage providers cannot read contentAccess is controlled with cryptographic keysUsers decide who can view or use their data This makes Walrus suitable for sensitive use cases such as: Enterprise profilesPrivate application statesPersonal dataAI datasetsInternal documents Natural Censorship Resistance Because data is: EncryptedFragmentedDistributed across multiple independent nodes No single entity can: Block accessRemove contentAlter data This helps Walrus uphold the true spirit of Web3: PermissionlessCensorship-resistantHigh resilienceUser-controlled WAL Token – The Ecosystem’s Economic Engine

$WAL is the operational token for the entire Walrus network: Storage providers earn WAL when storing and serving dataNodes may need to stake WAL as collateralReward and penalty mechanisms create operational accountabilityEncourages high uptime and performance This model helps to: Align individual incentives with network healthReduce malicious behaviorCreate long-term growth incentives Community-Driven Decentralized Governance Walrus is fully decentralized in governance: WAL holders have voting rightsDecisions on protocol upgradesAdjustments to incentive mechanismsLong-term development directions Walrus is community-driven, not dependent on centralized operators. Benefits for Developers Walrus solves a common architectural challenge faced by most dApps: storing large data without compromising decentralization. With Walrus: Smart contracts only need to store hashes or object IDsAvoid costly on-chain storageEnsure integrity and availability Typical applications: NFTs storing high-resolution mediaGame assets, maps, updatesAI datasets and inputsDecentralized social networks hosting user content Decentralized Storage Market and Cost Efficiency Walrus creates a decentralized storage marketplace: Nodes compete on price and performancePrices are determined by supply and demandProviders are not locked inErasure coding reduces redundancy costs This makes large-scale storage economical and sustainable over time. Key Role in Modular Blockchain Architecture In a modular blockchain ecosystem, data becomes increasingly important: RollupsOff-chain computationSpecialized layers Walrus acts as the data availability layer, ensuring data is always: AccessibleVerifiableRecoverable Reliable Enterprise and Organization Solution From a business perspective, Walrus offers: Default encryptionTransparent auditingClear incentive mechanismsProtocol-backed guarantees Trust is established through code and economics, not contracts or promises. Walrus – Data Platform for the Decentralized Internet As Web3 continues to evolve, data is no longer a side component—it’s core infrastructure. Walrus represents a major shift: Data is treated as seriously as execution and consensusOwnership belongs to usersScalability is ensured long-termSecurity and privacy are default By combining large-scale storage, security by design, decentralized incentives, and deep integration with Sui, Walrus is laying the foundation for a truly decentralized, sustainable, user-controlled Internet.