The protocol (AT Protocol) is basically activitypub except more seamless switching between instances and following people on different instances isn't a clusterfuck like on Mastodon.

Bluesky is just a client for the AT Protocol, like Damus/Amethyst/Snort etc

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Having said that, using a federated model like ActivityPub means it'll still have a lot of the inevitable centralization problems that AP has. Nostr and its relay model are much better at avoiding this.