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Fediverse Explained.
(i.imgur.io)
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Another useful definition that comes up is "Federation". As I understand it's referring to the whole set of mini-Reddits for example, and multiple Federations exist in the Fediverse, correct me if I'm wrong.
You're not wrong :) It's the whole set of mini-Reddits + the whole set of mini-Twitters + other similar federated platforms/sites.
Fediverse = federation + universe.