In-depth Analysis of the Sui Team's New Protocol Walrus

Overview of Key Points

• Mysten Labs is preparing to launch a new project, the Walrus protocol, following the Sui network and the DeepBook protocol.

• The two major advantages of Walrus that attract widespread attention:

1. Cost-effectiveness and security are superior to existing storage solutions.
2. Data can be programmed through the Sui network

• As one of the advanced decentralized storage protocols, the future practicality and value of Walrus are worth paying attention to.

Walrus protocol background

After successfully launching the Sui network and DeepBook protocol, Mysten Labs is venturing into the Walrus protocol field. While the market is full of expectations for Walrus, there are also some concerns:

• There are various decentralized storage solutions available in the market, and their performance varies.
• Concerned that Mysten Labs may divert resources due to focusing on the development of the Sui network, affecting the progress of new projects.

This article will deeply explore the Walrus protocol architecture, analyze its differences from existing storage solutions, and its relationship with the Sui network, focusing on how Walrus integrates into the Sui architecture and enhances the overall ecological value.

The difference between Walrus and existing storage solutions

Walrus has three main differences compared to existing storage models such as Filecoin and Arweave:

1. Storage Cost Efficiency

Walrus uses Red-Stuff encoding, demonstrating 100 times higher efficiency than Arweave and Filecoin:

• Compared to the replication cost of up to 500 times caused by Arweave's global data storage, Walrus only requires 4-5 times replication.
• More capable of reducing the risk of data loss than low-cost options of Filecoin

Walrus combines the advantages of Arweave and Filecoin by minimizing data loss probability and reducing replication costs. As the network expands, the burden on each Walrus node decreases, while the costs of Arweave increase. This structural difference makes Walrus's storage costs significantly more efficient.

2. Programmability

The biggest feature of Walrus is to achieve the programmability of data storage through the Sui network, giving data more functionality:

• Smart contracts can directly reference or trigger the stored data.
• NFT images can be stored in Walrus, and blob data objects can be created on Sui to connect with NFTs, addressing the traditional NFT "incomplete" problem.
• Walrus's blob data can be stored as Sui objects and controlled through Move smart contracts, enabling data transfer and ownership changes.

In contrast, Arweave and Filecoin have limited dynamic integration capabilities with on-chain applications. Although Filecoin has added some smart contract functionality through FVM, its data modification and control capabilities are still far inferior to Walrus.

3. Data Access and Deletion

The data of the existing storage protocol can be accessed by anyone once uploaded and cannot be deleted, which limits the application of institutions and enterprises that require storage of sensitive data or need to modify/delete data. Walrus, on the other hand, allows users to discard or modify data when needed.

This enhanced practicality greatly increases Walrus's application potential in traditional enterprises and Web2 companies. It should be noted that the blob data deleted in Walrus does not affect the integrity of the blockchain transaction data.

Walrus and Sui network collaboration

Walrus should not be seen as diverting attention from Sui, but rather as a complement to the storage stack of Sui applications. Walrus not only enhances the Sui network from a storage perspective but also actively influences Sui's governance token SUI, making the two inseparable.

The symbiotic relationship between Sui and Walrus

Mysten Labs has been focusing on storage issues early on and proposed a unique storage fund concept to address Sui's storage challenges:

• User fees are divided into calculation-related Gas fees and data storage fees.
• Storage fees are collected in advance and transferred to the storage fund, continuously allocated to validator nodes.
• Users can receive a refund for storage fees when they delete data.

This system:

1. Created economic incentives to reduce the capacity of distributed ledgers.
2. Solved sustainability issues related to storage

Walrus achieves data programmability by storing large-scale blob data and managing metadata objectification on Sui, forming a symbiotic relationship with Sui.

Walrus makes SUI a deflationary asset

When Walrus creates a blob data object, SUI will lock it in the storage fund based on the object size. Although some fees can be refunded, a portion will be permanently removed, reducing the circulating supply. The more Walrus is used, the more SUI is locked, creating a positive feedback loop.

In summary, Walrus is a positive signal for the Sui network and is expected to promote the diversified development of the Sui ecosystem.

Walrus: Sui's most critical protocol

Build a complete Web3 infrastructure

Mysten Labs not only focuses on the Sui network but is also dedicated to building a complete Web3 decentralized infrastructure:

• Sui network processing execution and consensus
• Walrus is responsible for storage
• SCION Management Communication
• zkLogin, Stashed and others provide familiar Web2 UI

Mysten Labs is expected to reshape the Web3 paradigm, and Walrus may be the most important protocol among them.

Walrus is not limited to the Sui ecosystem

Walrus can be used by any third party and may even replace existing storage protocols or other DA layers. This expands the demand for SUI, making it a more attractive asset and a bridge connecting Sui with the outside.

Can Walrus surpass Filecoin?

Walrus outlook is optimistic:

1. The operational mechanism efficiency far exceeds the existing storage protocol.
2. Executable tasks that cannot be completed by existing protocols.
3. Has a solid user base through the Sui network.

If Walrus becomes a representative storage protocol of Web3, it is expected to become a leader in the storage field.