To clarify, I mean that each Amethyst or Damus installation would set up a local personal relay for the user.

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I think it would be a great idea, the only thing is you'd still need a server somewhere if you wanted anyone else to be able to connect because of being behind a network firewall. There is server software that exists that could make this doable, but you're still stuck with *someone running an extra server to negotiate the p2p connection for you.

Without this, only you could connect so it would only be useful as a backup server for your own notes.