The way I like to explain it is with World of Warcraft. You sign up on a server and go out and mine some copper ore. Your player and that copper ore are only on that one single server. If you wanted to trade it with a friend, they would have to be on that server. However, if you went and posted that copper ore on the auction house, people from dozens of servers can see it and buy it. Those servers are in the ''lemmy'' sense federated with one another, but instead of virtual copper ore, it is cute pictures of cats.
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