At the heart of Walrus is a proprietary encoding algorithm called Red Stuff. Unlike traditional storage methods that simply make multiple copies of a file (which is costly and inefficient), Red Stuff uses advanced erasure coding to break data into small fragments spread across a global network of nodes. This allows the network to reconstruct an entire file even if a significant portion of the storage nodes go offline, achieving high reliability with much lower overhead than competitors like Filecoin or Arweave.

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