hang on, what part of the web assembly stack is this competing with exactly? I'm likely just very ignorant on how Web Assembly works but I don't understand exactly how it fits. Do browsers have pluggable hooks for interpreting web assembly that you can swap out for this or smth? Or are we talking about running WebAssembly on the server here?

My understanding is using web assembly isolation to execute arbitrary untrusted code in a different (non-browser) env

So like what node.js is to javascript in the browser? For whatever reason I had mistakenly thought that web-assembly was purely a front-end browser thing.

Yeah, this is one of many non-browser runtimes, e.g. see https://github.com/appcypher/awesome-wasm-runtimes

Lunatic is more opinionated than most of these or node, though, in that it's trying to emulate a particular concurrent system design pattern borrowed from Erlang/BEAM.