Not accurate. Nostr identity is already separated from relays in NIP-98. Which does scale to billions of users.

Relays may get to a million active users though. We might get to test that assumption, time will tell.

Nostr has delegation already. Though some are trying deprecate it. There are a few different key strategies. I am using subkeys right now in my testing.

There may be others.

Nostr keys are fine, they have been battle tested in bitcoin taproot already, and being adjacent to bitcoin offers unique possibilities. Which is really the value prop of nostr.

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As I said, it is a separate identity ONLY if you consider npubs ... just pubs lol. The only thing that makes npubs separate from bitcoin any secp is that they have attached data that can only be found on relays. And since Nostr has no proper way to map keys to relays, running your own relay after the popular ones die is useless, all because nostr devs refuse to be pragmatic and realize DNS existed for a reason.

And as you say, delegation is being deprecated and it never took off, and no actual discussion about it is happening other than nsecbunker.

And this unique value proposition is nonsense, any DID or Pkarr or any domain name with DNSSec can specify a secp key and gain these advantages, while still being resolvable in the first place.