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Is PeerTube dead or is discoverability bad?
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It's literally what federation is. It's why discovery doesn't work the way people expect.
Do you mean to say that PeerTube at least embeds videos? Because that's news to me, and welcomed news at that
Yes, video is streamed directly from its home server. There is a an option to mirror videos, so that your server will work as a seed, helping with bandwidth.
Images on Lemmy is also loaded from its home server, but there is a cache.