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ATProto is designed around accounts that are independent of data host, application, and moderation, all in the name of giving users individual control over these things. It's like if every Mastodon user ran their own server, but without the overhead
No, it's like every Mastodon user used the same server, and all the coordination is done by one server that nobody can replicate.
This is nothing like having a single server for every user. Perhaps you are confusing Bluesky (one app) with ATProtocol the shared network? There are already independent servers and apps operating separate from Bluesky