The new protocol Walrus developed by the Sui team: expected to become a leader in the storage field.

Key Points Summary

• Mysten Labs has successfully launched the Sui network and DeepBook protocol, and is now preparing to launch a new project - Walrus protocol.

• Despite the fact that there are many protocols in the decentralized storage market, Walrus has attracted widespread attention for two reasons: (1) Cost-effectiveness and security: Walrus is more cost-effective and secure than existing storage solutions. (2) Programmability: It allows the stored data to be programmed through the Sui network.

• As one of the most advanced projects in existing decentralized storage protocols, Walrus is highly worth paying attention to for its future practicality and value.

Background of the Walrus launch

Mysten Labs has successfully launched the Sui network and DeepBook protocol, and is now venturing into a new area - the Walrus protocol. The success of the Sui network and DeepBook has built up a lot of anticipation for the Walrus project. However, despite the high enthusiasm, there are also some concerns surrounding the Walrus protocol.

These concerns stem from several factors: there are already many decentralized storage solutions on the market, many of which have not achieved ideal performance; and there are also worries about resource allocation—especially whether Mysten Labs will divert resources to continue developing and expanding the Sui network, impacting the progress of new projects.

Therefore, we will explore the structure of the Walrus protocol, analyze its differences from existing decentralized storage solutions, and further investigate the relationship between Walrus and the Sui network, focusing on how Walrus integrates with the Sui architecture and enhances the overall value of the Sui ecosystem.

The difference between Walrus and existing storage solutions

To illustrate why Walrus needs to exist, we first need to discuss its differences from existing decentralized distributed storage solutions. From my perspective, there are three main differences between Walrus and existing storage models (particularly Filecoin and Arweave), which can be summarized as follows:

Storage Cost Efficiency

First, there are significant differences in storage costs between Walrus, Arweave, and Filecoin. Arweave uses a system where all nodes must replicate and store all data, while Filecoin allows users to decide how many nodes store their data. In contrast, Walrus employs Red-Stuff encoding, demonstrating lower costs than both Arweave and Filecoin, with efficiencies up to 100 times greater than them. At the same time, the probability of data loss is significantly reduced.

In simple terms, Walrus addresses the shortcomings of Arweave and Filecoin. While Arweave has a low probability of data loss, it comes with high replication costs; Filecoin, on the other hand, offers relatively cheap storage based on user demand, but low-cost options may pose a higher risk of data loss. Walrus combines the advantages of both by maintaining low replication costs while minimizing the probability of data loss.

In addition, for Arweave, as the number of nodes increases, the costs will also rise because it encourages all nodes/specified nodes to store as much complete data as possible. In contrast, Walrus only requires a single network data transfer, with each node storing a portion of the data, which actually alleviates the burden on individual nodes as the network grows. This structural difference makes Walrus's storage costs significantly more efficient than both Arweave and Filecoin.

Programmability

Although the efficiency of Walrus is very important compared to Arweave and Filecoin, its most significant difference from existing storage models is "programmability". Traditional storage is just a simple data repository, whereas Walrus achieves programmable decentralized storage through the Sui network, endowing stored data with more functionality.

What would happen if smart contracts could directly reference or trigger data stored in decentralized storage? For example, when minting an NFT, image files can be stored in Walrus, and their blob data objects can be created on the Sui network, linking them to the NFT object. This addresses the traditional NFT "incompleteness" problem, making NFTs through Walrus true Web3 assets.

Another example directly related to data storage is that the blob data of Walrus can be stored as Sui objects and controlled through Sui's Move smart contracts, which can transfer the stored data to other users or automatically change ownership. This is why we say that the data in Walrus is programmable.

In contrast, Arweave and Filecoin have very limited dynamic integration with on-chain applications, and it can even be said to be nearly impossible. Although Filecoin has added some smart contract features through FVM, the ability to modify and control data remains limited, and Walrus is clearly superior to both protocols in terms of programmability.

Data Access and Deletion

The existing storage protocols have a characteristic: once data is uploaded, it can be accessed by anyone and cannot be deleted. Although this characteristic may be useful for individual users, it poses significant limitations for organizations and enterprises that need to store sensitive data or require the ability to modify/delete data. In contrast, Walrus allows users to discard or modify their data when needed.

Some people may be concerned that this conflicts with the principle of immutability of the blockchain, but it is important to remember that what is deleted in Walrus is blob data. The transaction data unrelated to the deletion of blob data remains unchanged, and deleting blob data does not affect the integrity of the blockchain.

Compared to traditional storage, the enhanced practicality of Walrus greatly increases its application potential in traditional enterprises and Web2 companies, further raising market expectations for its diversity.

The collaboration method between Walrus and the Sui network

After we discussed the differences between Walrus and existing storage protocols, let's explore the relationship between Walrus and the Sui network. When Mysten Labs announced the preparation to launch the Walrus protocol, many expressed doubts, thinking, "They should focus on Sui instead of creating another new protocol." However, with a little understanding of how Walrus operates, it becomes clear that Walrus does not detract from the focus on Sui; rather, it should be viewed as a storage stack designed to enhance applications on Sui. In other words, Walrus not only complements the Sui network from a storage perspective but also actively influences the governance token SUI of the Sui network, making the two inseparable.

The Symbiotic Relationship Between Sui and Walrus

In fact, Mysten Labs paid great attention to storage issues during the early design phase of Sui. Blockchains inevitably grow during use, which may lead to increased transaction fees for future Sui network users. Therefore, from the early design phase of Sui, Mysten Labs proposed a unique storage fund concept to address Sui's storage challenges.

The operation of the Sui storage fund is as follows: The fees submitted by users to Sui validation nodes are divided into two parts: 1) Gas fees related to computation, and 2) Storage fees for data storage. Sui collects storage fees in advance when users upload data and channels these funds into the storage fund. The storage fund continuously allocates these funds to validation nodes as long as the data is stored on the chain. Furthermore, if users delete data, they can receive a refund of the storage fees.

The unique on-chain data storage system of Sui has produced two effects:

• Users can receive a refund of storage fees when deleting on-chain data, creating economic incentives to reduce the capacity of distributed ledgers.
• The system addresses sustainability issues related to storage by precharging storage fees and using them as rewards for future validation nodes.

Although Sui addresses sustainability issues through this unique structure, storing large-scale blob data on-chain remains a burden. This is where Walrus comes into play - by storing large-scale blob data with Walrus and managing its metadata as objects on Sui, programmability can be achieved without directly storing the data on Sui.

In addition, Walrus has implemented the most distinctive feature compared to other storage protocols through Sui - making the stored data programmable and controllable. Ultimately, a symbiotic relationship was established between Sui and Walrus, complementing each other's weaknesses and creating unique advantages.

Walrus makes SUI a deflationary asset

From the example of the storage fund, we can see that the Sui network requires a certain amount of SUI to be paid as storage fees for storing any object, and Walrus is no exception. When a blob data object is created in Walrus, SUI will be locked in the storage fund based on the size of the object.

Although some fees can be refunded by deleting data, a portion of the fees will have a destruction effect by permanently removing tokens to reduce the circulating supply. In other words, the more data stored through Walrus, the more SUI will be permanently locked in the storage fund, creating a virtuous cycle where increased usage of Walrus leads to a decrease in the circulation of SUI.

In summary, the emergence of Walrus is positive news for the Sui network, both from a network perspective and an asset perspective. It is expected that through Walrus, the Sui ecosystem will develop in a more diversified direction.

Walrus will become the most critical protocol of Sui.

It's not just about building a blockchain.

When Mysten Labs was first established, I thought it was just a company focused on the Sui network. However, after seeing the launch of services like Deepbook and SuiNS, I began to ponder what kind of vision Mysten Labs is actually pursuing. When I encountered Walrus, I realized their goal is to build a complete decentralized infrastructure for Web3.

Compared to other companies, Mysten Labs has a different time perspective when looking at this industry. They are not just issuing tokens, creating hype, and quickly monetizing; instead, they have a vision of leading innovation in areas such as execution, storage, consensus, and communication, while understanding users' inertia towards Web2 services and creating the most suitable UI for them.

Sui network handles execution and consensus, storage is processed by Walrus, communication is managed by SCION, and the Web2 familiar UI is managed by zkLogin, Stashed, SEAL, and KELP.

If these plans can all be successfully implemented, I believe Mysten Labs can rewrite the existing Web3 paradigm. My initial thought was limited; Mysten Labs is not just trying to build a blockchain—they are a team building infrastructure for a new network. Of course, I think Sui is at the core of Mysten Labs' vision, and the other plans play a complementary role. The same goes for Walrus, in my opinion, Walrus might be the most important protocol among them.

Walrus is not limited to the Sui ecosystem

However, Walrus is not limited to the Sui ecosystem. Like other storage protocols, Walrus can be used by any third party, not just Sui applications. It may even serve as a strong alternative to existing storage protocols or as a substitute for other DA layers.

The usability of Walrus expands the demand for SUI beyond the Sui network. When Walrus is utilized, data objects are created on the Sui network, resulting in a decrease in the circulation of SUI. In other words, Walrus has the potential to make SUI a more attractive asset by creating external demand. Therefore, Walrus is expected to become a bridge, extending Sui in various directions.

Can Walrus surpass Filecoin?

Despite being in the