Mysten Labs’ Walrus could reshape decentralized gaming and apps

The decentralized-storage alternative to AWS or IPFS will launch its mainnet March 27

article-image

Walrus.xyz modified by Blockworks

share

This is a segment from The Drop newsletter. To read full editions, subscribe.


Walrus is an upcoming decentralized-storage platform from Sui developer Mysten Labs that will offer programmable file storage for the gaming-focused L1 Sui, as well as devs on Solana, Ethereum, or other chains that also want to use it. 

Walrus is designed for large binary files, or “blobs.” Right now, there’s 833.33 TB in total storage available, with about 78,890 GB currently being used across more than 4.5 million blobs, according to Walruscan

That means Walrus could store videos, images, PDFs, or other files, as well as apps. Walrus uses Sui smart contracts to make those blobs programmable.

Flatlander is one of the early projects using Walrus. Flatlander is an imaginary world concept with NFTs; their site is being hosted on Sui, and all site resources are being loaded from Walrus. 

The Walrus mainnet will launch next week on March 27. The team has also released their tokenomics for the WAL token. 

The upcoming data storage chain uses delegated proof of stake, and it consists of storage nodes that will have to compete with each other to offer competitive pricing for file storage.

Walrus has just raised $140 million in funding from a round led by Standard Crypto. 

Could Walrus be good for blockchain gaming or art? I think so. 

One of the primary appeals of crypto is that it’s supposed to be decentralized. That’s a term that gets thrown around a lot, but it’s supposed to mean that the underlying infrastructure that supports a token’s existence — including the chain itself — is owned and operated by many different people around the world. Therefore, a decentralized chain is difficult to censor via shutdowns if there are enough participants owning a small share of the nodes. 

As we know, NFTs themselves aren’t technically the art you see but the underlying tokens and data tied to them. The visual data of an NFT is metadata that can be changed by the creator. 

That metadata can be stored on centralized platforms like AWS — or IPFS, a decentralized solution. More options aren’t a bad thing, though we don’t know yet how decentralized Walrus will ultimately become.

“Today the majority of decentralized apps rely on traditional web hosting to serve their front ends and client side code, which offers poor integrity and availability. Decentralized stores may be used to serve web and dApps content directly while ensuring its integrity and availability,” the Walrus whitepaper reads. 

Mysten Labs believes Walrus is faster, more affordable, and more robust than the competition.

“There’s absolutely a world where games on Sui use Walrus for a wide variety of possibilities,” Mysten Labs Head of Communications Lexi Wangler told me.

TBD on whether it’ll make sense to store an entire game’s assets onchain. We’ve already seen a few games that are almost 100% onchain (like Pirate Nation), but it would be cool if a more graphically-complex game could run more game components onchain, too.


Get the news in your inbox. Explore Blockworks newsletters:

  • Blockworks Daily: The newsletter that helps thousands of investors understand crypto and the markets, by Byron Gilliam.
  • Empire: Start your morning with the top news and analysis to inform your day in crypto.
  • Forward Guidance: Reporting and analysis on the growing intersection of crypto and macroeconomics, policy and finance.
  • 0xResearch: Alpha directly in your inbox. Market highlights, data, degen trade ideas, governance updates, token performance and more.
  • Lightspeed: Built for Solana investors, developers and community members. The latest from one of crypto’s hottest networks.
  • The Drop: For crypto collectors and traders, covering apps, games, memes and more.
Tags

Upcoming Events

Industry City | Brooklyn, NY

TUES - THURS, JUNE 24 - 26, 2025

Permissionless IV serves as the definitive gathering for crypto’s technical founders, developers, and builders to come together and create the future.If you’re ready to shape the future of crypto, Permissionless IV is where it happens.

Old Billingsgate

Mon - Wed, October 13 - 15, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

recent research

Research Report Templates (5).png

Research

Outside of stablecoins, the value of tokenized assets sits below $20B, dominated by the following asset classes: private credit, US Treasuries, commodities, institutional alternative funds, stocks, non-US government debt, and corporate bonds. In the coming months, we see the greatest opportunities in the tokenization of illiquid markets, particularly private equity. However, the successful integration of offchain assets into blockchain ecosystems relies heavily on clear and consistent regulatory frameworks, with purpose-built infrastructure to support it.

article-image

Markets react to Fed Chair Jerome Powell’s comments at yesterday’s FOMC meeting

article-image

At DAS, the US president noted he’s called upon Congress to enact “simple, common-sense rules” for stablecoins and market structure

article-image

GDC shows us crypto game developers feel a bit down despite lavish parties and packed crypto side events

article-image

What a Pyth/Morpho/Re7 debacle says about decentralized accountability

article-image

At DAS, VanEck’s Matthew Sigel weighed in on a market that’s “90% flows and 10% fundamentals”

article-image

The first sitting president to address a crypto conference says the US is positioned to “dominate crypto and the next generation of financial technologies”