Blockchain: Technology Stack

Aastha Thakker
Oct 30, 2025
7 min read

Hey everyone!

Feels like it’s been a while since we last talked blockchain. But let’s get back! Today we are going to see the technology stack behind the blockchain.

If you’ve been following along, you already know blockchain isn’t just about Bitcoin or smart contracts. It’s built on layers with different consensus algorithms and all.

Here’s your Blockchain Library to revisit and revise.

Part 1: Blockchain Basics

Part 2: Blockchain: Building the

BlocksPart 3: Blockchain Agreement: Understanding Consensus Algorithm

So before we understand this tech stack, it’s important to understand where and why it matters. You’ve probably come across the term Web 3.0, well, this entire stack belongs to that world.

Web 1.0: Where It All Started

Remember when using the internet meant waiting forever just to open one page? It was slow, clunky, and mostly used in offices or computer labs. At that time, hardly anyone had internet at home, and even if they did, it was more of a luxury than a daily thing.

That early phase of the internet is known as Web 1.0.

Web 1.0 was like an online notice board. Information was put up by a few, and the rest could only read it. No likes, no comments, no uploads.

The idea wasn’t to connect people, but to store data. Creators had all the control, and users had none. You were just a reader and not a contributor.

There were no apps, no chats, no feeds. It was basic — but it laid the first brick for everything we use today.

Web 2.0: The Internet Gets Social

After the slow and static days of Web 1.0, things finally started to change. With Web 2.0, users were no longer just silent readers — they became part of the conversation. This version of the internet gave people the power to not just read, but also write, share, post, and interact. You could create your own blog, drop a comment, upload a photo, or even rate your favorite movie online. Platforms like YouTube, Facebook, and early blogging sites made the internet feel alive. Video streaming took off. Online gaming became a thing. Shopping went digital — and small businesses started to go global from their living rooms. But with this growth came a new question: What’s next? What does the future hold for the internet?

Web 3.0: Smarter, Safer and Yours

Web 3.0 is powered by a decentralized structure. This means there’s no central gatekeeper, no big company holding all the keys.

Your data? Stays with you. Your control? Fully in your hands. It’s built on peer-to-peer tech, so things work through direct user connections, not massive servers owned by someone else.

The search experience also gets a glow-up — instead of just matching keywords, it actually understands context. So when you ask something, the results are way more on point.

Some people are calling Web 3.0 the “smart web” — not because it just looks better, but because it thinks better. Apps can now respond, adapt, and act based on your preferences.

Technology Stack

1. Application Layer

Regular browsers like Chrome or Safari are like cars built for normal roads, they can’t handle the blockchain highway. That’s where dApp browsers come in. MetaMask is like adding a special adapter to your regular browser that suddenly lets you talk to blockchain apps. It’s like having a universal translator that speaks “blockchain language.” Trust Wallet and Brave Browser do the same thing but come with built-in crypto wallets, so you’re ready to spend digital money wherever you go.

The hosting part is where things get interesting. Instead of your favorite app living on one company’s server that could crash or get shut down, decentralized apps spread themselves across thousands of computers worldwide. It’s like having your Netflix account backed up on every computer in your neighborhood — even if half of them break, your shows are still there. This makes apps nearly impossible to kill or censor.

Then we have the actual decentralized apps themselves. These are like regular apps but with superpowers. Uniswap lets you trade cryptocurrencies without a bank or exchange taking a cut. Decentraland is like Minecraft but you actually own the virtual land and can sell it for real money. The cool part? No single company controls these apps — they’re governed by the people who use them.

2. Services and Optional Components

This layer is like the backstage crew that makes everything work smoothly. Data feeds are the messengers that bring real-world information into the blockchain bubble. Since blockchains can’t Google things or check the weather, services like Chainlink act like trusted news anchors, delivering verified information. When a sports betting app needs to know who won the game, oracles make sure the right data gets through.

Off-chain computing is like having a calculator for the blockchain. Instead of doing complex math on the expensive blockchain network, apps do the heavy lifting on regular computers and just post the results. It’s like preparing your tax return at home instead of doing it at the expensive accountant’s office — you only pay for the final signature.

Multi-signature wallets are like having a shared bank account that requires multiple keys. Your startup’s funds might need 3 out of 5 founders to agree before spending money. State channels are like opening a tab at a bar — you and your friend can exchange drinks all night privately, then settle the final bill publicly.

Smart contracts are like vending machines for agreements — put in the right conditions, get the automatic result. A freelancer’s payment gets released automatically when they deliver the work, no chasing invoices or waiting for checks to clear.

3. Protocol Layer

This is where the blockchain’s brain lives, all the rules about how computers agree on what’s true and how they work together. Consensus algorithms as we have seen before, they keep network honest. Bitcoin uses Proof of Work, which is like solving really hard puzzles to earn the right to add new information. Ethereum is switching to Proof of Stake, which is more like putting down a security deposit — if you lie, you lose your money. Solana uses Proof of History, creating timestamps that prove when things happened, making everything super-fast.

Sidechains are like having multiple highway lanes that all connect to the main road. You can build entire apps on a sidechain without clogging up the main blockchain. If one sidechain breaks, the others keep running fine. Virtual machines are the interpreters that make sure all the code runs safely without crashing the whole system. Ethereum Virtual Machine is like having a universal language translator that any smart contract can speak. Some blockchains create their own custom virtual machines because they have different ideas about security and speed.

Participation requirements decide who gets to join the party. Public blockchains are like open concerts where anyone can walk in, while private blockchains are invite-only exclusive clubs. The cool thing is that each blockchain can set its own rules about who participates and how decisions get made.

4. Network and Transport Layer

This layer is like the internet’s postal service for blockchain data. RLPx is Ethereum’s custom delivery system that makes sure messages between computers are encrypted and reach the right destination. It’s like having a secure courier service that verifies everyone’s identity before delivering packages. The system automatically finds other computers to connect with and creates secure channels for communication.

Roll Your Own is the option to create custom delivery methods when standard ones don’t work. It’s like building your own private road when the existing highways don’t go where you need them to. This flexibility lets blockchain networks innovate with new ways of moving data around.

Trusted Execution Environment is like having a super secure vault inside each computer where sensitive operations happen. Even if hackers break into the main system, they can’t touch what’s happening inside the TEE. It handles things like device authentication, encryption keys, and makes sure your fingerprint or face scan data stays completely private.

Block Delivery Networks are like having Amazon warehouses for blockchain data scattered around the world. Instead of everyone downloading information from one crowded server, you get it from the closest location, making everything faster. These networks cache popular content and deliver it instantly, while also providing extra security features like device authentication and encrypted communication channels.

5. Infrastructure Layer

This is the foundation that everything else sits on — like the electrical grid and water pipes of the blockchain world. Mining as a Service is where companies rent out their powerful computers to help secure blockchain networks. Instead of buying expensive mining equipment yourself, you can pay a company like DMG to mine cryptocurrency for you and split the profits. It’s like hiring a professional gardener instead of maintaining your own lawn — you get the benefits without the hassle.

The network infrastructure is completely decentralized, meaning no single company controls it. Think of it like the difference between a traditional taxi company with one central dispatcher versus a mesh network where every driver talks directly to nearby drivers. Virtualization creates virtual copies of computers, servers, and storage systems, making everything more flexible and cheaper to run. It’s like having multiple apartments in the same building — they share the same foundation but operate independently.

Distributed computing turns thousands of individual computers into one giant supercomputer. When you need to solve a massive problem, instead of using one powerful machine, you break the task into small pieces and send them to computers around the world. It’s like crowdsourcing a giant jigsaw puzzle where everyone works on different sections simultaneously. Bitcoin mining works exactly this way — millions of computers worldwide work together to secure the network.

Nodes are the individual computers that keep copies of all the blockchain data and validate new transactions. Imagine if every person in your neighborhood had a copy of the community rulebook and voted on any changes — that’s how nodes work. Even if half the nodes go offline, the network keeps running because the information is everywhere. Tokens are the digital money or credits that power these networks, like arcade tokens that let you access different digital services or rewards. Storage is spread across thousands of computers instead of sitting in one company’s data center, making your files nearly impossible to lose or censor.

For example, A person opens her MetaMask browser and logs into her university’s blockchain portal to get his graduation certificate (Application Layer). The system checks her grades from external databases and verifies her identity using automated verification services (Services Layer). When that person requests her certificate, thousands of university network nodes vote to confirm that she completed all requirements using the blockchain’s consensus system (Protocol Layer). Her certificate request travels through encrypted university networks and gets delivered securely to the credential issuing system (Network Layer). Finally, she gets degree permanently recorded on the blockchain across distributed servers worldwide — no one can fake it, lose it, or revoke it without consensus (Infrastructure Layer).