Is there any benefit to host my own instance?
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Kind of both. His server has a mirror of the community. When he comments it gets saved on his server and the his server communicates with the original server. In turn the original server also communicates his comment with other federated servers.
If data is migrated from server to server, as the community grows in size, the data to be maintained on each server also grows in size? Also i’ve seen some servers allow the creation of new users/communities, but some don’t… whats the point of that if the data is just replicated anyway?