When we talk about web3 we always think about blockchains, consensus layers, smart contracts and decentralized applications. But we always miss the most important layer of web3 “the data layer”. We don't think about the large data files NFTs (metadata, images), Games (textures, maps, player assets), DeFi (records), AI (models and datasets) and web3 web pages.
All these large data files need decentralized storage because if we store the data on the single server of any company it completely eliminates the concept of the very first principle of blockchain which is decentralization. So we need to find a decentralized data storage solution.
#Walrus provides us the solution of decentralized storage because it changes where data lives. Instead of putting files on a single server it spreads them across a network of independent operators and coordinates everything through blockchain logic.
How walrus is decentralized protocol
Walrus is a decentralized data layer because it does not keep the file in a single location but spreads the files across the nodes of the network. Walrus protocol splits the files into shards and spreads these shards onto the multiple nodes of the network, data is mathematically encoded into shards even if you need a single piece of the file, you should reconstruct the file. Even if several nodes disappear, your data can still be located and retrieved
Walrus doesn't rely on decentralization of these nodes, it uses Sui blockchain to locate where the pieces of data, proof of storage that nodes are actual and holding data, payment and incentives via $WAL to keep the network alive and programmable data storage so that smart contracts and dAPPs can retrieve and overwrite data. Smart contracts can control who can access data under what conditions data can become available and who can access it.
Decentralization works only when participants are rewarded or motivated. Walrus storage providers earn $WAL for hosting data, users pay WAL token for storage and retrieval.
Why do we need a decentralized storage layer when the whole concept of blockchain is decentralized?
Yes, blockchains are decentralized, but blockchains do not decentralize data storage in a practical way. They decentralize consensus and state, not large-scale data. Onchain storage is extremely expensive, of a very limited size and it is optimized to record transactions, hashes not files. If you try to store files like images, videos, AI datasets and web content directly on Sui or any other chain, costs will explode and the network would slow down.
Modern applications need off-chain data to scale, they need large data files NFTs, Games, DeFirecords and Website content. If these data files are stored on centralized servers only webpages are partially decentralized.
Walrus is completing the stack, think of web3 three layers first is blockchain, second isexecution layer and third is data layer. Blockchain layer is all about consensus mechanism,execution layer is all about smart contracts and data layer where all the data lives.
