I know it’s not how Lemmy works, what I’m saying is “There’s a big issue with how Lemmy works, here’s how I think decentralization should be approached instead.” Having terabytes of information possibly disappearing because one person gets in a car accident on their way to work isn’t an improvement vs a centralized system hosted on AWS.
Communities would be moderated by their creator, server admins could decide not to host content from any communities they don’t want to host, if no server admin wants to host your community then you’re free to host it on your own server or to fix the problems with it.
There’s illegal content on Lemmy right now, even instances that don’t want to host it need to clean up their images folder because of it, so it’s not as if the way it works right now is any better for that and it’s not as if there’s no instance admin ready to host that content.
User credentials can be stored securely. Do you think your instance admin has a text file with your password written in plain characters?
The third credential I was suggesting is just one solution so not all servers have to have a “master database” with all user info stored, split the database and let the users know they need to remember they confirm their login through database X or Y. I’m sure much more intelligent people could come up with another solution.