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What is the Fediverse?

A colorful pentagram logo. The corners are 5 filled circles in the colors red, yellow, green, blue and purple. All circles are connected with bars in colors that are the result of mixing the colors of the two circles. Between the bars and the circles there is a small gap. The logo is transparent but usually the background is white. The Fediverse is a giant decentralized or "federated" network of social media services owned and moderated by the people, consisting of mostly Free Software. Unlike centralized social media platforms, the Fediverse is not and cannot be owned by one person or company and therefor cannot be influenced by the rich and powerful. There are services for microblogging, blogging, photoblogging, videohosting and much more and they are all interconnected or federated. So you only need one account to follow users on any of the platforms. How does the Fediverse work? What does "Fediverse" even mean? And what does "federated" mean? Why use the Fediverse instead of some other social media platform? Who is the Fediverse for? What is the Fediverse not?