Web3 Stack: What It Is and How It Powers Decentralized Apps

When you use a DeFi app, trade an NFT, or interact with a blockchain game, you’re not just using one thing—you’re using a Web3 stack, a layered architecture that powers decentralized applications by separating core functions like execution, settlement, and data storage. Also known as modular blockchain architecture, it’s what lets Ethereum L2s handle thousands of transactions per second without breaking the main chain. This isn’t theory—it’s the real engine behind every functional crypto app today.

The execution layer, the part of the stack that runs smart contracts and processes user actions like swaps or bets is where most of the speed happens. Think of it like a factory floor: fast, cheap, and focused on doing the work. Meanwhile, the settlement layer, the security backbone that verifies those actions and locks them into the main blockchain acts like the quality control team. It doesn’t do the work, but it makes sure nothing gets away with fraud. Together, they solve the biggest problem in crypto: speed vs. security. Projects that ignore this split—like those trying to cram everything onto Ethereum mainnet—end up slow and expensive. The winners? Chains like Arbitrum and Optimism that split these roles cleanly.

But the Web3 stack doesn’t stop there. It also includes data availability layers, the systems that ensure all transaction data is stored and accessible so no one can hide or alter history. Without this, even the fastest execution layer is useless. That’s why rollups rely on Ethereum for data availability—it’s not just about security, it’s about trust. And if you’re building or using a DeFi app, you need to know which parts of the stack it uses. A project claiming to be "scalable" but using only one layer? Red flag. Real Web3 apps are built on multiple layers working together.

What you’ll find below isn’t a list of buzzwords. It’s a collection of real-world breakdowns showing exactly how these layers work—or fail—in practice. From how execution layers cut gas fees to why settlement layers stopped a 51% attack on Ethereum Classic, these posts cut through the hype. You’ll see what happens when a project ignores data availability, how MiCA regulations impact stack design in Europe, and why tools like UniSat Wallet are built for specific layers, not the whole stack. No fluff. Just what you need to know to tell the real Web3 apps from the fake ones.