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I haven't followed the tech of Bluesky or the AT Protocol closely: does this step mean that people can now set up their own Bluesky instances? Where can I see one in the wild?

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Bluesky doesn't have "instances", it has PDSes, Relays, and AppViews. People can run their own PDSes but PDSes are kind of invisible so you won't "see" them. You'll just see the whole Bluesky network as usual.

What I mean is: where is the website other than bsky.app where I can see content from the network?

The bsky.app web app is a JavaScript app that runs in a browser. It talks to an AppView (API server) which talks to a Relay which talks to all PDS hosts on the network.

There are other clients for Bluesky that do the same thing as the bsky.app web app: https://docs.bsky.app/showcase?tags=client

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