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Mastodon.world and Lemmy.world July 2023 blog post
(blog.mastodon.world)
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It's the fear of centralization, I believe (correct me if I'm wrong!).
Seeing that the whole point of federation is to decentralize the web, putting everything under the Cloudflare umbrella goes against this philosophy.
The federation philosophy is not going to hold up when users centralize themselves on an instance, requiring that instance to seek out things like Cloudflare just to bare the weight.