In the Web3 era, decentralized storage has become one of the core infrastructures of the blockchain ecosystem. Walrus Protocol, an innovative storage protocol on the Sui blockchain, stands out for its efficiency, low cost, and high availability. The Walrus token ($WAL), as the native token of this protocol, is not only used to pay for storage fees but also participates in governance and incentive mechanisms, driving the sustainable development of the entire network. Since its mainnet launch in March 2025, Walrus has attracted a large number of developers, projects, and investors. Its core technology—particularly the RedStuff encoding scheme—is regarded as a breakthrough that disrupts traditional storage models. This article provides an in-depth analysis of Walrus's core technologies, comprehensively examining aspects such as its integration on the Sui chain, data programmability, and security model. Additionally, we explore the economic model of $WAL and its role within the ecosystem, aiming to offer readers a detailed and comprehensive perspective.
Walrus Protocol is not merely a file storage system but a decentralized Blob storage network designed for large files such as AI datasets, NFT media, game assets, video images, and blockchain archives. It addresses single points of failure and censorship risks in traditional centralized cloud storage (e.g., AWS S3), while being more efficient and cost-effective than competitors like Filecoin or Arweave. According to the latest data, Walrus’s storage cost can be as low as 1/80 to 1/100 of centralized solutions, thanks to its unique technology stack. As of January 2026, the Walrus ecosystem has expanded to multi-chain support, including integrations with Ethereum and Solana, and collaborations with multiple AI and DeFi projects such as Humanity Protocol and Talus Network.
Core Technology Analysis: RedStuff Encoding Scheme
Walrus's core innovation lies in its RedStuff encoding technology—a two-dimensional (2D) erasure coding protocol based on the Twin-code framework and linear erasure coding. Unlike traditional one-dimensional erasure codes (e.g., Reed-Solomon), RedStuff achieves higher security and lower replication factors through a 2D matrix structure, requiring only a 4.5x replication rate to provide high availability and fault tolerance, while supporting data self-healing.
How RedStuff Works
Assuming there are n = 3f+1 storage nodes in the network, with up to f Byzantine nodes controlled by adversaries. RedStuff splits Blob B into a (f+1) × (2f+1) symbol matrix, where each symbol is of size O(|B| / (f+1)). Then, primary shards (Primary Slivers) and secondary shards (Secondary Slivers) are generated through 2D expansion:
Primary Encoding: Column-wise encoding of the matrix, expanded to n symbols. Each node receives a row of extended symbols, forming the primary shard. The threshold is 2f+1, meaning at least 2f+1 symbols are needed to recover the primary shard.
Secondary Encoding: Row-wise encoding of the matrix, expanded to n symbols. Each node receives a column of extended symbols, forming the secondary shard. The threshold is f+1, meaning only f+1 symbols are needed to recover the secondary shard.
This 2D design enables nodes to efficiently recover lost data in asynchronous networks. For example, when a node loses a shard, it can asynchronously request intersection symbols from other nodes. First, it recovers auxiliary shards using symbols from f+1 honest nodes; then, it recovers the primary shard using 2f+1 symbols. The total recovery bandwidth is only O(|B| / n), far lower than the O(|B|) required by traditional Reed-Solomon codes, which need to reconstruct the entire Blob.
RedStuff also incorporates elements of fountain codes—a type of infinite-rate erasure code capable of generating an unlimited number of repair symbols. This makes Walrus more resilient when handling large-scale data, especially suitable for AI-era large model training datasets or high-resolution media files. Compared to Filecoin’s Reed-Solomon (high bandwidth recovery) and Arweave’s full replication (over 25x replication rate), RedStuff’s 4–5x replication factor significantly reduces costs while maintaining data integrity.
Mathematics and Algorithm Details
The RedStuff encoding function can be expressed as: Encode(B, t, n), where t = f+1 is the number of source symbols, and n is the total number of nodes. It splits B into t source symbols, each of size O(|B| / t), then generates n−t repair symbols. The decoding function Decode(T, t, n) reconstructs B from any t correct symbols. Security relies on threshold differences: the low threshold (f+1) for secondary shards enables fast recovery, while the high threshold (2f+1) for primary shards prevents malicious nodes from forging data.
In practice, RedStuff uses vector commitments to store metadata, which are encoded via one-dimensional erasure coding, reducing per-node overhead from quadratic to linear (e.g., from 64MB to constant in a 1000-node system). This ensures scalability and supports PB-level storage.
Blob Storage Mechanism with Self-Healing Functionality
Walrus's Blob storage is an application-layer implementation of RedStuff. Blobs are split into shards (Slivers) distributed across n nodes, with each node holding a primary/secondary shard pair. The write process includes: encoding the Blob, sending shards, collecting 2f+1 confirmations, and publishing an Availability Proof (PoA) on the Sui chain. The read process collects metadata (via one-dimensional encoded shards), retrieves 2f+1 secondary shards, decodes, and verifies consistency.
Self-healing is a highlight of Walrus: nodes can asynchronously request recovery of lost shards during write operations without centralized coordination. This is especially critical in asynchronous networks, avoiding failures caused by latency in traditional systems. Testnet data shows that with 105 nodes, a 130MB Blob has a write latency of ~30 seconds and throughput reaching 18 MB/s.
Integration with the Sui Blockchain
Walrus is deeply integrated with the Sui blockchain, using Sui’s Move language and smart contracts to handle control operations such as transaction ordering and state updates. Storage nodes are organized into committees by Epoch, with the blockchain managing Blob ID registration and Proof of Availability (PoA). Epoch transitions use a multi-phase mechanism: writes target the new committee, while reads can span old and new, ensuring uninterrupted operation. This makes Walrus a core component of the Sui Stack, supporting cross-chain scalability.
Programmable Data and Authentication Structures
Walrus turns data into programmable assets: Blob IDs are based on commitment hashes (including Merkle trees), enabling smart contracts to directly manage storage, extend lifespan, or delete data. Merkle trees ensure shard consistency, support partial reads and inclusion proofs, making it suitable for complex DeFi applications and social media content.
Security Model and Incentive Mechanism
Walrus’s BFT model tolerates f malicious nodes, ensuring security through quorums: f+1 for recovery, 2f+1 for read/write/challenge. Asynchronous challenges use Distributed Key Generation (DKG) to produce randomness, preventing malicious nodes from forging storage. Defense against malicious writers is achieved through on-chain authentication to exclude invalid Blobs.
$WAL tokens play a key role: used for prepaying storage (up to 2 years), node staking, and governance. Incentives include challenge-response rewards and data recovery subsidies; penalties involve burning tokens (if challenge failure exceeds 50%). Pricing is determined by node voting (requiring 66.67% stake), ensuring economic compatibility.
Advantages, Comparisons, and Challenges
Compared to IPFS/Filecoin, Walrus does not fully replicate files but instead fragments them using RedStuff, resulting in lower costs and stronger resistance to censorship. Advantages include infinite scalability, enhanced privacy (via Seal protocol), and AI-friendliness. However, the challenge lies in its dependency on Sui, which may delay multi-chain rollout.
Entering 2026, Walrus is deepening its AI infrastructure and programmable data markets. The Grayscale Walrus Trust is attracting institutional capital, while ecosystem projects like Walrus Sites are driving decentralized websites. The practical demand for $WAL will rise, leading to significant potential market cap growth.
Walrus Protocol, centered on RedStuff, is redefining decentralized storage. $WAL is not just a payment tool but also the cornerstone of the ecosystem. Investors and developers should closely monitor its development, as it represents a milestone in the Web3 data economy.
@Walrus 🦭/acc $WAL #wals @Walrus 🦭/acc
