Alright so I’m not an expert so I might not be explaining it correctly.
Federated Network: Multiple instances sharing content, such as Lemmy
Peer to Peer Network: There is no “instances”, just peers. Many peers sharing content. Every user is a peer. There is no server costs, because every device connected to the network is acting like a mini-server. It will cost your device some storage space and network bandwith depending on the how the software is designed.
Or do you think Centralized servers are still gonna dominate the future?
I think ultimately something like that will be the solution. And maybe it will just be that you can subscribe to any other user’s block list, and perhaps they can in turn subscribe to yours, and basically within your peer 2 peer network the block list(s) are federated. You could potentially even have a block and whitelist where when someone you think shouldn’t get blocked gets blocked you personally white list them, and in the case of conflicting block and whitelists, a consensus based confidence list is created where some users just don’t show in your feed if enough percentage of your block list follows block them vs whitelist them, and users near 50% show in your feed in a collapsed “controversial” mode