IOTA Storage Launches Testnet With Walrus-Like Design, Raising Open-Source Questions

IOTA Storage, an independent file-storage project using the IOTA network for payments and storage proofs, has been running on the IOTA testnet since October 17, according to a review published by Iota Feed on October 21, 2026. The project allows users to store files and websites on its own servers while using IOTA for payment and proof-related transactions. However, questions about its implementation have emerged because several elements appear similar to Walrus, an open-source decentralized storage network built on Sui.

The project does not issue a separate token. Instead, payments are made in IOTA, potentially giving the network another use case beyond its existing transactions and applications. The distinction matters for the IOTA community because storage services that generate recurring payments could create demand for the network’s native token, although activity on a testnet does not establish future adoption or economic impact.

IOTA Storage Testnet Shows Early Activity

According to Iota Feed’s reported testnet count, IOTA Storage operates four storage nodes controlled by the project itself. The service supports files of up to 142 MiB, and its testnet activity had reached 1,237 transactions from 132 addresses. The project’s own address was included in that total, so the figures should not be interpreted as evidence of 132 independent users or customers.

The early numbers offer a snapshot of the project’s technical activity rather than proof of a mature storage network. Four project-run nodes provide a limited basis for assessing decentralization, reliability or resistance to outages. Further testing would be needed to determine how the system performs as demand grows and whether additional independent operators can participate.

Iota Feed also reported that 30 of the project’s 36 contract modules share names with modules in Walrus, which operates as an open-source storage network under the Apache 2.0 license. Its review further identified code from Walrus’s walrus-core library in the IOTA Storage application. Reusing open-source code is common in software development, and similarities in module names alone do not establish improper copying.

However, the review said IOTA Storage’s source code was not publicly available for comparison. Its findings were therefore based on names and the completed application rather than a full source-code examination. The project’s website and documentation also did not identify Walrus, according to the review, leaving the precise relationship between the two implementations unclear.

Transparency and Independent Verification Remain Important

Another distinction concerns the project’s relationship with IOTA. IOTA Storage is an independent initiative, not a product of the IOTA Foundation. Its activity on the IOTA testnet therefore should not be treated as an official Foundation launch or endorsement. The review also reported that the project had not undergone an audit, leaving its security and implementation unverified by an independent assessment.

For a storage service, those questions extend beyond whether transactions appear on a blockchain. Users also need to understand where files are physically hosted, how availability is maintained, how storage proofs are generated and checked, and what happens if a storage node stops operating. The supplied information does not establish that the service offers the same architecture or guarantees as Walrus.

The project could still develop into a useful IOTA-based application if it demonstrates reliable storage, transparent implementation and sustained demand. Payments in IOTA offer a clear connection to the network, but meaningful adoption will depend on whether users choose the service for practical reasons rather than simply because it is available on a testnet.

For now, IOTA Storage represents an early experiment in applying IOTA to file storage and website hosting. Its reported activity provides an initial point of reference, while the similarities with Walrus make code transparency and clear attribution important issues to resolve. Public source code, independent security reviews and growth in activity from unrelated users would provide stronger evidence of the project’s long-term prospects.