Walrus (WAL) has raised $140 million: A decentralized storage network aiming to change the game

In Spring 2025, the Walrus project completed a massive $140 million funding round led by Standard Crypto with support from major names such as a16z crypto, Electric Capital, and Creditcoin. This figure not only reflects investor confidence but also signals a significant shift in the decentralized data storage industry. Shortly thereafter, the Walrus mainnet was launched, opening up vast opportunities for blockchain-based data management applications.

Walrus - A New Data Storage Solution for the Blockchain Era

Walrus is a decentralized blob (data block) storage platform built on the Sui blockchain. If you’re looking for a way to store large amounts of data securely, efficiently, and cost-effectively, this is the solution. Unlike traditional storage systems that require copying entire data sets across multiple servers, Walrus uses an intelligent technology called erasure codes to split your data into parts, each stored on different nodes within the network.

You only need a small subset of these parts to reconstruct the original data. This means significantly reduced storage costs, faster data retrieval, and maintained security. The platform’s WAL token provides economic incentives and governance for the entire network.

The Secret Behind Red Stuff Technology: How Does Walrus Handle Data?

The core of Walrus lies in an exclusive encryption protocol called Red Stuff. This is not a typical erasure code but a smart two-dimensional design optimized for storage on the blockchain.

When you store a file on Walrus, it is divided into primary shards and recovery shards. You don’t need all these shards to recreate the original file—only a certain number (denoted as f + 1 within a larger set) is sufficient. If a node in the network loses its data, the system can quickly recover from other nodes without compromising data integrity.

The encryption uses simple operations like XOR, enabling fast and lightweight processing without heavy resource consumption. Security is maintained through advanced technologies such as Merkle trees and digital signatures, preventing any impersonation attempts.

Walrus Architecture: The Role of Sui Blockchain

The Sui blockchain acts as a “central dashboard” for the entire system. It manages storage nodes, file metadata, and verifies that nodes are properly storing data. Storage nodes operate in groups called committees, each holding a portion of your data.

The network functions in fixed periods called epochs, facilitating efficient management of data writing, reading, and recovery. Verification is achieved through storage proofs and challenge protocols, ensuring the network remains honest.

How Does Walrus Work: The Data Write and Read Process

Storing and accessing data on Walrus occurs through a two-step process, ensuring you retain full control.

When You Write Data

First, you encrypt your file into primary and recovery shards using the Red Stuff protocol. Next, you register the file on the Sui blockchain by submitting a transaction to reserve storage space and receive a unique blob ID. Then, you distribute these shard pairs to storage nodes, which verify the data based on public commitments. Once enough confirmations are collected (usually 2f + 1), a certificate is published on-chain to prove your file is available.

When You Read Data

To access data, you send requests to storage nodes to retrieve metadata and file shards. You gather enough primary shards (f + 1) along with verification proofs, allowing you to reconstruct the original file. If the data matches the stored commitments, you succeed in retrieval. If not, you receive a failure signal. This process guarantees data integrity and full user control.

What Opportunities Does Walrus Offer for Application Development?

Walrus’s biggest differentiator from other decentralized storage networks is its programmability. Data on Walrus isn’t just stored—it can also interact through smart contracts based on Move.

This opens up vast possibilities for applications: from AI data management, digital asset storage, to rich media files and blockchain history. Developers can build automated financial apps, dynamic data management solutions, and even new decentralized services.

With $140 million in investment, Walrus is positioned to become an essential part of the Sui ecosystem and the broader decentralized storage technology landscape. As enterprises increasingly demand scalable, flexible, and verifiable data solutions, Walrus is the answer many have been waiting for.