Since the url already has a particular host, "all" you need is a shortcut database. There are 3rd party sites that shorten urls as well, but better if the original url site does it. Of course, that means storing more data.

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True, slightly centralizing but not too bad. That's not what satellite is doing though, they're just giving you a possibly dead link.

For my own purposes, I think I'll just make my own url shortener on my own domain.

FYI w3.do is URL shortener built on Nostr.