There has always been an awkward phenomenon in the Web3 storage field: either technical teams focus solely on algorithms and parameter optimization, neglecting market demand, ultimately creating a refined laboratory product; or project teams chase hot trends with short-term gains, lacking solid technical foundations and unable to truly establish differentiated competitiveness. This disconnect between technology and business is draining the potential of the entire sector.

The emergence of Walrus has changed this situation. This project, incubated by Mysten Labs, successfully broke through after completing a $140 million private placement financing, with a valuation of $2 billion. The underlying logic is worth a deep analysis. On the surface, RedStuff's 2D erasure coding technology is indeed advanced, but what truly makes Walrus stand out is the complete "technology→scenarios→business→feedback" transformation loop built by the project team.

**Technology is not the goal; solving problems is**

In the Web3 storage sector, many projects have good technical solutions. But the Walrus team deeply understands a core principle: the value of technology lies not in how finely tuned the parameters are, but in whether it can accurately address real-world scenario pain points. They do not blindly pile up complexity but design their technical architecture around specific application needs.

This mindset directly influences subsequent business transformation. Because the technology is designed from the start for particular scenarios, it naturally has scenario adaptability. When technology and scenarios are highly aligned, commercialization becomes a natural progression.

**Scenario implementation is the standard of validation**

Walrus's performance in specific scenarios proves this point. The project team did not stay at the white paper stage but actively sought real application touchpoints. Through actual deployment and data feedback, they continuously verify the effectiveness of their technical solutions, while also discovering and optimizing business models in the process.

This forms a positive feedback loop: scenario feedback drives technological iteration, technological optimization enhances user experience, and better experiences attract more applications. Once this cycle is running, business value naturally emerges.

**Building sustainable monetization capabilities**

Many projects fall into a monetization dilemma after fundraising. Walrus, on the other hand, has been thinking from the beginning about how to build a sustainable revenue model. The key is that the project team understands that monetization should not be a short-term, quick-profit scheme like "harvesting" but a long-term mechanism that grows with the network.

Walrus's approach is to turn technological advantages directly into service advantages, which then translate into economic benefits. Simply put, users are willing to pay because of advanced technology, and the project gains continuous income as the user base grows. This mode is far more resilient than mere token speculation.

**Uncopyable transformation barriers**

Walrus's ability to achieve a $2 billion valuation is also due to the barriers they have established, which are difficult for others to replicate quickly. These are not just technical barriers but more importantly, commercialization capability barriers.

Even if a latecomer obtains similar technology, it is very difficult to quickly replicate the scenario ecosystem, user base, and feedback mechanisms that Walrus has already built. This difficulty in replication is the real reason investors are willing to assign high valuations.

**Industry insights and risk considerations**

Walrus's success points to a path for the entire Web3 storage sector: do not obsess over micro-optimizations of technical parameters, but instead re-examine the value of technical solutions from a commercialization perspective. The question should not be "How complex is this algorithm?" but rather "What real problems can this solve?"

Of course, there are also hidden risks in this process. Commercialization pressures may lead to technical compromises, and short-term profit goals could impact long-term planning. Walrus needs to find a balance between rapid growth and technical depth.

Overall, Walrus has demonstrated through practical actions that in a highly competitive sector like Web3 storage, projects that can connect technology, scenarios, and business are the true winners with promising prospects.