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?