this post was submitted on 11 Oct 2023
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Big instances could be decentralized services as you describe. So one of their servers could go down without any functionality being lost.
So while federation does not imply decentralization, it also does not exclude it. In theory. In practice it excludes it a bit, since the fractured nature means more instances remain under the threshold above which it makes sense to have a decentralized instance over a monolith.