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I think that this is exactly what you are describing https://github.com/WorldQL/mammoth
This has been done before outside of Wynncraft but it requires a lot of work. There also isn't really a viable public solution for this especially for a full multiplayer experience. This has been done to a lesser extent for Mr. Beasts Minecraft events. Egg82 used to have a video up that explained what Kennytv and Egg worked on. If I recall correctly they used some sort of message bus, I think redis, and then used ProtcoolLib to show the block changes and players to players that were in the area. The closest you can get to this but it doesn't really solve the same problem is Minestom but it doesn't provide even a vanilla experience out of the box not to mention plugin ecosystem etc.