Which crypto wallet is decentralized?

Decentralized crypto wallets give you complete control over your private keys, unlike centralized exchanges which hold your funds. This means only *you* can access your crypto. However, this also means you are solely responsible for securing your keys – losing them means losing your crypto permanently.

Here are a few examples of decentralized wallets, keeping in mind that the cryptocurrency landscape is constantly evolving, and fees and supported cryptocurrencies can change:

MetaMask: A popular browser extension and mobile app. Offers support for a vast number of cryptocurrencies (500,000+), but charges a small fee (0.875%) typically built into the exchange rate when swapping cryptocurrencies. This fee is not a fixed percentage and varies. It’s easy to use, but remember, security is your responsibility.

Trust Wallet: Another mobile-first option. Generally has no fees for sending crypto, but charges variable fees for swaps (exchanging one cryptocurrency for another). Supports over 200 cryptocurrencies. Considered user-friendly.

Ledger Nano S: This is a *hardware* wallet, meaning it’s a physical device that stores your private keys offline, providing a high level of security. It supports a large number of cryptocurrencies (5,500+) and fees are usually included in the exchange rate. It’s the most secure option on this list but requires more technical understanding.

Exodus: A desktop wallet available for Windows, macOS, and Linux. Fees vary depending on the cryptocurrency and any third-party services used. It supports over 300 cryptocurrencies.

Important Note: Always research a wallet thoroughly before using it. Read reviews and understand the security implications before entrusting it with your funds. The number of supported cryptocurrencies is a constantly changing aspect.

What crypto is actually decentralized?

Bitcoin stands out as the most prominent example of a truly decentralized cryptocurrency. Its value isn’t tied to any underlying asset like gold; it’s purely network-driven. This lack of intrinsic value, often misunderstood, is actually a core strength, preventing manipulation by external forces. Its scarcity is algorithmically defined, immune to inflationary policies of central banks – a key differentiator from fiat currencies.

Decentralization isn’t just a buzzword; it’s Bitcoin’s bedrock. The network operates on a distributed ledger (blockchain), meaning no single entity controls it. This inherent resilience to censorship and single points of failure is crucial for its longevity. Mining, the process of validating transactions and adding new blocks to the chain, is widely distributed globally, further reinforcing its decentralized nature. While other cryptos claim decentralization, many fall short due to pre-mines, centralized control over development, or reliance on specific entities for governance.

However, perfect decentralization is a constantly evolving ideal, even for Bitcoin. Aspects like mining concentration (due to economies of scale) and the evolving regulatory landscape present ongoing challenges. The crucial takeaway remains that Bitcoin’s decentralized architecture, while not flawless, is significantly more robust than most alternative cryptocurrencies.

Which crypto wallet cannot be traced?

The question of untraceable crypto wallets is complex. While no wallet offers absolute anonymity, some significantly improve privacy compared to others. The level of anonymity depends on various factors including the wallet’s features, your usage habits, and the sophistication of any investigation.

Several wallets are often cited for their enhanced privacy features. Samourai Wallet, for example, utilizes techniques like Whirlpool (for coin mixing) and Ricochet (for obfuscating transaction paths) alongside Tor for enhanced network privacy. It’s a software wallet, requiring careful security practices.

Hardware wallets like the BitBox02 offer a different approach to privacy. Its air-gapped nature—never connecting directly to the internet—significantly reduces the risk of compromise. However, the air-gap protection doesn’t guarantee complete anonymity of transactions themselves. Careful consideration must be given to the handling of seed phrases.

Zengo Wallet uses a keyless multi-party computation (MPC) system along with biometric logins, offering a balance between convenience and security. The MPC approach distributes the private keys, reducing the risk of a single point of failure. However, the biometric security relies on the strength of the biometric system itself and your personal security practices.

Another hardware option, the Ellipal Titan, is an air-gapped wallet using QR codes for transactions. This removes the need for internet connection during transactions, further enhancing privacy. Nonetheless, the QR codes must be managed securely to prevent unauthorized access.

It’s crucial to remember that even with these privacy-focused wallets, best practices are paramount. Using VPNs, Tor, and avoiding revealing personal information during transactions are essential for maintaining privacy. No wallet is a silver bullet; a multifaceted approach is needed to enhance anonymity.

Can blockchain be used for identity verification?

Yes, blockchain offers significant advantages for secure identity verification. Its decentralized and immutable nature prevents single points of failure and data breaches inherent in centralized systems. Digital identity systems built on blockchain utilize cryptographic hashing and digital signatures to ensure data integrity and authenticity. This allows for verifiable credentials, where an individual’s identity and attributes (e.g., driver’s license, educational qualifications) are cryptographically linked and stored on the blockchain, enabling instant and secure verification by authorized parties. Different blockchain architectures can be employed; permissioned blockchains offer greater control and privacy, while public blockchains provide greater transparency and auditability, depending on the specific application needs. Furthermore, self-sovereign identity (SSI) solutions, built on blockchain, empower individuals with greater control over their own data, allowing them to selectively share verifiable credentials with institutions. This contrasts sharply with traditional systems where individuals have limited control and visibility into how their data is used. However, scalability and transaction costs remain challenges for widespread adoption, especially on public blockchains. The choice of consensus mechanism and efficient data storage solutions are crucial for optimal performance and cost-effectiveness.

Implementation typically involves zero-knowledge proofs or similar cryptographic techniques to verify identity without revealing sensitive information. This enhances privacy while maintaining security. Integration with existing KYC/AML (Know Your Customer/Anti-Money Laundering) compliance frameworks is crucial for regulatory acceptance. Interoperability between different blockchain-based identity systems is also a key consideration for broader adoption, requiring standardized protocols and data formats. Decentralized identifiers (DIDs) play a vital role in enabling this interoperability, providing a unique, verifiable, and decentralized identifier for each individual.

What is the difference between self-sovereign identity and decentralized identity?

Decentralized Identity (DID) and Self-Sovereign Identity (SSI) are often confused, but they’re not exactly the same. Think of it like this: DID is about where your identity information lives, while SSI is about who controls it.

Decentralized Identity means your identity data isn’t stored in one big, central database controlled by a single company (like Facebook or Google). Instead, it’s spread across many different places, making it harder for hackers to steal all your information at once. This uses blockchain technology or other distributed ledger technologies for security and transparency.

Self-Sovereign Identity goes a step further. It means you are completely in charge of your identity data. You decide what information to share, with whom, and for how long. Think of it like having a digital passport that only you control. You can selectively grant access to different parts of your identity, proving you’re over 18 to buy alcohol online, for example, without revealing your entire medical history.

Essentially, SSI is a specific type of DID that emphasizes individual control. All SSI is DID, but not all DID is SSI. DID focuses on the distributed technology, whereas SSI highlights the user’s autonomy and control.

What is decentralized social crypto?

Decentralized Social (DESO) is a game-changer in the social media landscape. It’s a blockchain-based platform offering true ownership of your data – unlike the giants who currently monetize your information without your real consent. Think of it as a social network where you control your content and even earn cryptocurrency for your contributions.

Users create profiles and post content, but the key difference is that this content lives on a decentralized blockchain, meaning no single entity can censor or control it. This offers superior security and resilience compared to traditional centralized platforms. The DESO token fuels the entire ecosystem, and users can earn DESO through various activities, including content creation and engagement.

Beyond user profiles and posts, DESO’s potential is vast. We’re talking about a fundamentally different social media model with exciting possibilities for creators and influencers. Imagine a future where creators are directly compensated by their followers, bypassing the middleman and maximizing their earnings. This is the promise of DESO, a shift towards a truly user-owned and user-controlled social media experience.

The inherent scarcity and blockchain security of DESO also offer significant investment potential. As adoption grows, the value of the token is likely to increase, making it an attractive asset for crypto enthusiasts.

This is not just about posting cat videos; it’s about a paradigm shift in how we interact online and how we generate value from our digital footprint. The implications are far-reaching, impacting everything from content creation to community building and even data privacy. The DESO project is pioneering a new frontier in social media, leveraging the power of blockchain technology for a truly decentralized and user-empowered experience. This is a long-term play worth keeping an eye on.

What is ssi blockchain?

SSI blockchain? Think of it as a game-changer for digital identity. It uses blockchain’s transparent, immutable ledger to secure and manage identities, putting you in control.

Forget centralized authorities holding your data hostage! SSI gives you ownership. Each identity is represented as a verifiable credential on the blockchain, meaning your digital identity isn’t tied to a single company or platform. This is huge for privacy and security.

Here’s what makes it exciting for investors:

Enhanced Security: Blockchain’s inherent security features make SSI incredibly resistant to breaches and data manipulation.
Interoperability: Imagine seamlessly verifying your identity across different platforms without needing to re-enter your details every time. That’s the power of SSI.
Decentralization: No single entity controls your identity, giving you true autonomy over your personal data.

Some key aspects to consider:

Scalability: Current SSI solutions are still addressing scalability issues to handle mass adoption.
Usability: Making SSI user-friendly for the average person is crucial for widespread acceptance. This is an area of ongoing development.
Regulation: The regulatory landscape for SSI is still evolving, presenting both opportunities and challenges.

While still relatively early in its adoption, SSI blockchain is a disruptive technology with significant long-term potential for both individuals and businesses. The shift towards decentralized identity is inevitable, and SSI is at the forefront of this revolution.

Are digital wallets decentralized?

Digital wallets aren’t inherently decentralized; it depends on the specific implementation. While some, like those utilizing blockchain technology, offer decentralized control over your digital identity and assets, others are centralized, meaning a third party holds the keys to your information. The key differentiator is the level of control you possess.

Decentralized digital ID wallets, built on blockchain or distributed ledger technologies, empower true ownership of your data. This means you, not a corporation or institution, are in charge. This control extends beyond mere storage; it allows selective disclosure of Verifiable Credentials (VCs). You choose which VCs to present and to whom, and even dictate the precise information shared within each credential – demonstrating attributes without revealing underlying raw data. This granular control is a critical security and privacy advantage in the age of increasing data breaches and surveillance.

Self-sovereign identity is the core principle at play. Decentralized digital wallets are instrumental in achieving it, giving individuals agency over their own digital lives. This contrasts sharply with centralized systems where your data resides at the mercy of a single entity, vulnerable to hacking, manipulation, or even arbitrary policy changes. The ability to prove your identity without sacrificing your privacy is a game-changer.

Interoperability is another crucial element. Ideally, a decentralized digital wallet should be compatible with various services and applications, enabling seamless verification across different platforms. However, this aspect requires standardization efforts and widespread adoption to fully realize its potential.

Security in a decentralized system is enhanced by the distributed nature of the data. A single point of failure is absent, making attacks exponentially more difficult. However, robust cryptographic practices remain crucial for safeguarding your private keys, which are essential to accessing your digital assets and credentials.

Can a decentralized wallet be traced?

Yes, a decentralized wallet’s activity can be traced, although the level of traceability depends on several factors. While the wallet itself might be pseudonymous, all on-chain transactions are recorded on the blockchain. This immutability is the blockchain’s core strength, but it also means that transaction history is publicly auditable. Investigators can analyze the blockchain to trace the flow of funds by identifying addresses associated with specific transactions, observing transaction patterns, and employing chain analysis tools. The level of anonymity depends on techniques employed by the user, such as coin mixing or using privacy-focused coins like Monero, Zcash, or Mimblewimble-based cryptocurrencies. However, even with these techniques, sophisticated analysis methods, particularly those leveraging on-chain data combined with off-chain intelligence (e.g., KYC/AML data from exchanges), can often break through a significant degree of anonymity. The effectiveness of tracing also depends on the blockchain’s design; some blockchains offer more privacy than others due to different transaction structures and data privacy features. Furthermore, the tracing capabilities are enhanced if the wallet has ever interacted with centralized services, as these interactions often leave identifiable traces linking the wallet to real-world identities.

What is the most secure crypto wallet?

There’s no single “most secure” crypto wallet; security depends on individual needs and practices. The optimal choice hinges on factors like the types of cryptocurrencies held, technical expertise, and risk tolerance. However, some wallets excel in specific areas:

Exodus: User-friendly interface, good for beginners comfortable with hot wallet risks. Security relies on strong password practices and device security. Consider using 2FA.
Coinbase: Convenient for diverse crypto holdings but inherently involves custodial risk, meaning Coinbase holds your private keys. Security depends heavily on Coinbase’s own security measures.
BitBox: A hardware wallet focusing solely on Bitcoin, offering superior security due to offline key storage. However, it’s limited to Bitcoin only. Regular firmware updates are crucial.
Electrum: A desktop wallet prioritizing open-source transparency and strong security features. Users must manage their own private keys, requiring a good understanding of crypto security best practices. Be cautious about downloading only from the official source.
Crypto.com: Offers DeFi integration, but this expands potential attack vectors. Understanding the risks associated with smart contracts and decentralized applications is vital. Review smart contract audits before interaction.
BlueWallet: Simple and user-friendly, suitable for beginners, however it’s a hot wallet, so security hinges on strong passwords and device security. Use a strong, unique password and enable 2FA.
Ledger: A popular hardware wallet offering good security through offline key storage. Integration with DeFi expands functionality but increases complexity and potential vulnerabilities. Regularly check for firmware updates and be aware of phishing scams.
Trezor: Another reputable hardware wallet known for its open-source nature, fostering community scrutiny and enhancing security. Similar to Ledger, DeFi integration adds complexity, requiring careful consideration of associated risks. Verify the authenticity of your device before use.

Key Security Considerations for ALL Wallets:

Strong Passwords/Seed Phrases: Never reuse passwords, use a password manager, and safeguard seed phrases offline in multiple secure locations.
Two-Factor Authentication (2FA): Enable 2FA wherever possible to add an extra layer of security.
Software Updates: Keep your wallet software and firmware up-to-date to patch security vulnerabilities.
Phishing Awareness: Be wary of phishing attempts; never share your seed phrase or private keys.
Regular Backups: Regularly back up your wallet data, but store backups securely and offline.
Hardware Wallet Best Practices: For hardware wallets, verify the device’s authenticity and never use it on untrusted networks.

Ultimately, the “most secure” wallet is the one you manage most responsibly.

Is there a decentralized social network?

Decentralized social networks (DSNs) represent a significant shift from the centralized platforms we’re accustomed to. Unlike Twitter or Facebook, which rely on a single company controlling all data and infrastructure, DSNs distribute control across multiple independent servers. This architecture offers several key advantages, including increased resilience to censorship and single points of failure. If one server goes down, the network continues to function. Furthermore, user data isn’t held hostage by a single entity, enhancing privacy and security.

Mastodon, a popular example, showcases the DSN model effectively. It’s built on open-source software, meaning its code is publicly accessible, allowing for community contributions and modifications. This transparency fosters trust and allows for independent audits, reducing the risk of hidden backdoors or exploitable vulnerabilities. However, Mastodon’s decentralized nature also presents a learning curve. Users must choose a specific server (called an “instance”) to join, and interacting with users on different instances can be more complex than on centralized platforms. The federation model, while enhancing decentralization, can also lead to siloed communities.

Beyond Mastodon, other notable DSNs include Diaspora*, GNU social, and ActivityPub-compatible platforms. ActivityPub is a decentralized social networking protocol that enables interoperability between different instances, much like email allows communication between various providers. This is crucial for the long-term success of the DSN movement, encouraging a more connected and vibrant ecosystem.

The cryptographic aspects of DSNs are often interwoven with their design. While not all DSNs utilize blockchain technology directly, the underlying principles of distributed consensus and cryptographic security are highly relevant. Future developments may see greater integration of blockchain and cryptographic techniques to further enhance user control, data integrity, and verifiable identities within the DSN space. This could lead to more secure and transparent methods for managing reputation and combating misinformation.

The rise of DSNs represents a potential paradigm shift in online social interaction. While challenges remain in terms of usability and widespread adoption, the inherent benefits of decentralization—enhanced privacy, resilience, and community control—make it a compelling alternative to the centralized giants currently dominating the social media landscape.

What is decentralization crypto?

In blockchain technology, decentralization means distributing control and decision-making away from a single entity—a person, company, or group—to a network of participants. This contrasts with centralized systems where a single authority controls all aspects. Decentralization in cryptocurrencies manifests in several key ways:

Firstly, distributed ledger technology (DLT) underpins decentralization. Instead of a single database, a shared, replicated ledger exists across many nodes, making it significantly more resistant to censorship and single points of failure. Consensus mechanisms, like Proof-of-Work (PoW) or Proof-of-Stake (PoS), govern how these distributed nodes validate and add new transactions to the blockchain, ensuring data integrity and preventing manipulation.

Secondly, decentralized governance aims to distribute decision-making power over the network’s rules and evolution. This can involve on-chain governance systems where token holders vote on proposals, or more complex models involving decentralized autonomous organizations (DAOs). This minimizes the influence of any single actor.

Thirdly, open-source protocols are crucial. Transparency of the underlying code allows community scrutiny and contribution, further reducing the power of any central authority and fostering trust and innovation. However, it’s important to note that true decentralization is a spectrum; many systems claim to be decentralized but may exhibit varying degrees of centralization in practice, often due to network effects, mining centralization, or reliance on key infrastructure providers.

The implications of decentralization are significant: increased resilience to attacks, censorship resistance, greater transparency, and potentially enhanced security. But it also presents challenges, including scalability limitations, regulatory uncertainty, and the potential for fragmentation.

What is the difference between a crypto wallet and a digital wallet?

The core distinction lies in asset type: crypto wallets manage cryptocurrencies like Bitcoin and Ethereum, interacting directly with blockchain networks. This necessitates understanding concepts like private keys and public addresses for secure asset control. Digital (or e-) wallets, conversely, handle fiat currencies (USD, EUR, etc.) and facilitate conventional online payments via credit/debit cards or bank accounts. They operate within established financial systems, offering features like payment processing, transaction history, and often integration with online retailers.

Key Differences Summarized:

Asset Type: Crypto wallets: Cryptocurrencies; Digital wallets: Fiat currencies.
Technology: Crypto wallets: Blockchain technology; Digital wallets: Traditional payment networks.
Security: Crypto wallets: Reliant on secure private key management; Digital wallets: Rely on established security protocols of payment processors and banks, but vulnerabilities still exist.
Transaction Fees: Crypto wallets: Transaction fees vary significantly based on network congestion; Digital wallets: Fees are generally lower and more predictable.
Regulation: Crypto wallets: Less regulated; Digital wallets: Subject to existing financial regulations.

Choosing the right tool depends entirely on your needs. If you’re trading crypto, a crypto wallet is essential. If you’re simply making online purchases, a digital wallet suffices. However, some advanced digital wallets now offer limited cryptocurrency support, blurring the lines somewhat. Always prioritize security regardless of your choice; understand the risks associated with both types of wallets.

Consider these nuances:

Custodial vs. Non-Custodial Wallets: Crypto wallets can be custodial (exchange holds your keys) or non-custodial (you control your keys – higher security but greater responsibility). Digital wallets are typically custodial.
Hardware Wallets: For maximum crypto security, consider hardware wallets which store your private keys offline.
Software Vulnerabilities: Both crypto and digital wallets are susceptible to software vulnerabilities; stay updated with security patches.

Can a decentralized wallet be hacked?

Decentralized wallets, while leveraging the supposedly immutable blockchain, aren’t immune to hacking. The blockchain itself is generally secure, but the weak points lie elsewhere.

Private Key Compromise: This is the biggest risk. If your private keys are stolen (phishing scams, malware, compromised hardware wallets), your funds are gone. No amount of blockchain security can save you from this.
Exchange Vulnerabilities: Even if you use a decentralized wallet, you’ll likely interact with centralized exchanges at some point. These exchanges have been historically vulnerable to hacks, resulting in significant losses for users.
Software Bugs and Exploits: Wallet software, like any software, can contain bugs. These vulnerabilities can be exploited by hackers to steal your funds. Regularly updating your wallet software is crucial.
Phishing and Social Engineering: Hackers often target users directly through phishing emails, fake websites, or social media scams designed to steal your seed phrase or private keys.
Hardware Wallet Failure: While considered more secure, hardware wallets aren’t invulnerable. Physical damage, manufacturing flaws, or firmware vulnerabilities can all compromise your funds.

Mitigation Strategies:

Employ strong, unique passwords and utilize two-factor authentication wherever possible.
Be extremely cautious about clicking links or downloading files from untrusted sources.
Regularly back up your seed phrase, but store it securely offline and in multiple locations.
Keep your wallet software updated and research the security track record of any exchange you use.
Consider using a reputable hardware wallet and understand its limitations.
Diversify your holdings across multiple wallets and exchanges to limit potential losses from a single point of failure.

Ultimately, while blockchain enhances security, individual user practices and the security of associated services remain critical vulnerabilities in the overall system.

What is the blockchain for Social Security?

The potential application of blockchain technology to Social Security is revolutionary. Imagine a system where your Social Security Number (SSN) isn’t a freely distributed identifier, vulnerable to misuse and theft. Instead, blockchain enables self-sovereign identity.

This means you, the individual, maintain complete control over your personal data. No more handing over your entire SSN to every bank, employer, or service provider. Using blockchain-based digital identity solutions, you selectively grant access to specific, verified pieces of information – only what’s necessary for a given transaction, and only for a defined period.

This granular control offers unparalleled privacy and security. Data breaches become significantly less impactful because compromised data is limited in scope. For example, instead of exposing your full SSN during a job application, you might only share your age verification and employment history. The blockchain acts as an immutable record, ensuring the integrity of the data shared.

This approach aligns with the growing movement towards decentralized identity management. The benefits extend beyond just Social Security; it can be applied to healthcare records, education credentials, and virtually any other personally identifiable information. Existing bureaucratic processes could be streamlined and automated, making things more efficient and transparent.

While significant hurdles remain in widespread implementation, including regulatory challenges and the need for widespread adoption of the technology, the potential of blockchain for securing and managing sensitive personal information like Social Security data is undeniable. It represents a paradigm shift from centralized, vulnerable systems to a more secure, user-controlled environment.

Furthermore, the inherent transparency of blockchain can foster greater trust. The audit trail ensures accountability and reduces the risk of fraudulent activities. It’s a shift towards a future where individuals regain control over their digital identities and sensitive personal data, potentially revolutionizing the way we interact with institutions and each other.

Does blockchain reveal identity?

Nah, blockchain doesn’t automatically reveal your identity. Think of Bitcoin addresses like super-secure post office boxes – only the person with the key (private key) can access the contents and link them to their real-world identity. The transactions themselves are publicly viewable, maintaining transparency, but the addresses are pseudonymous, not directly tied to names or personal information. This is crucial for privacy. However, it’s not foolproof; sophisticated analysis techniques can sometimes link addresses to individuals through things like exchange KYC/AML procedures or on-chain behavior analysis, revealing patterns that can potentially breach anonymity. Furthermore, mixing services can help enhance privacy by obscuring transaction origins, but they also have their own trade-offs and risks. The level of anonymity you have depends on how carefully you manage your security and your interaction with the blockchain.

Is it safe to give MoonPay your social security number?

No, providing your Social Security Number (SSN) to MoonPay or any cryptocurrency exchange for that matter is generally not recommended. While MoonPay employs security measures, transmitting such sensitive data online inherently carries significant risk. SSNs are not typically required for cryptocurrency transactions. The risk of data breaches, even with robust security, is ever-present. Compromised SSNs can lead to identity theft and severe financial repercussions.

MoonPay’s security measures, while likely substantial, are not foolproof. Consider the potential impact of a data breach: Your SSN could be used for fraudulent purposes such as opening accounts, applying for loans, or filing false tax returns. The cryptocurrency industry, while evolving, still faces significant security challenges.

Alternatives to sharing your SSN should always be explored. If a platform insists on your SSN for seemingly unnecessary reasons, consider using an alternative service. Prioritize platforms with strong security reputations and transparent security practices. Regularly review your credit report for any suspicious activity.

Ultimately, the risk-reward assessment strongly favors avoiding sharing your SSN with cryptocurrency platforms unless absolutely necessary and verified as a legitimate requirement by trusted independent sources. The potential cost of a compromise significantly outweighs any perceived benefits.

What is Mastodon social used for?

Mastodon is like a decentralized social network, a bit like a cryptocurrency but for social media. Instead of one big company controlling everything (like Twitter), it’s built on many independent servers called “instances.” Think of each instance as its own little social network, each with its own rules and community.

Key Differences from Centralized Networks:

Decentralization: No single company owns or controls Mastodon. This makes it more resilient to censorship and single points of failure. If one instance goes down, the rest of the network remains functional.
Instances: You choose the instance you join based on its focus (e.g., gaming, science, art). This allows for more niche communities and avoids the echo chambers sometimes seen on larger, centralized platforms.
The Fediverse: All these instances connect to each other, forming a larger, interconnected network called the “fediverse.” It’s like a network of networks, expanding the reach of your posts beyond a single instance.

How it Works (Simplified):

You choose an instance and create an account.
You post and interact with users on your instance.
Because of the fediverse, you can also see and interact with users from other instances.

Think of it like this: Imagine a network of independent banks. Each bank operates separately, but they can all communicate and transfer funds between each other. Mastodon works similarly, but instead of money, it’s posts and interactions.