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Does the existence of did:web make it decentralized? You don't have to use the centralized identity provider at all. And if you own a domain why would you?

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In theory, yes. In practice, not really, since the vast majority of users won't care to do it.

Most people don't own a domain to do it with, but I think the custodial/management of that is the one place Bluesky has had some revenues.

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