Bluesky and Wide Decentralization
Contrary to current perceptions, Bluesky can not be widely decentralized because full independence on AT Protocol simply costs too much. This is not something that can be fixed. It is based on the inherent architecture of the protocol.
All ATProto components rely on some very expensive network resources, accordingly there will never be very many, making these resources points of centralization.
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Bluesky and Wide Decentralization (cont.)
With Mastodon/ActivityPub independent service cost relates to the number of instance users, so small decentralized services are very low cost.
With Bluesky/ATProto some components can be distributed fairly well, like users storing their own data, but other components, like full scale relays, necessarily have a cost proportional to the number of users on the whole network, making small and medium size services expensive.
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