It's a list of "reserved identifiers". Saying it's list of banned words is misleading.
Bluesky, the "decentralized protocol", has a list of forbidden words: https://github.com/bluesky-social/atproto/blob/0bac4e775242b1916ed4216ab113b9553facf8fa/packages/identifier/src/reserved.ts
Discussion
Scroll down further to the 'naive, incomplete list of slurs and unacceptable words' array. https://github.com/bluesky-social/atproto/blob/0bac4e775242b1916ed4216ab113b9553facf8fa/packages/identifier/src/reserved.ts#L1050
Yeah I see it. If I understand correctly, they got a list of naughty words somewhere and made them part of "reserved identifiers". So you cannot come and create an account @hitler. That does not mean it's a forbidden word as nostr:npub180cvv07tjdrrgpa0j7j7tmnyl2yr6yr7l8j4s3evf6u64th6gkwsyjh6w6 suggests.
That's true. I didn't intend to mislead, but this was very misleading.
You can still use racial slurs on Bluesky, you just can't name your account with one of them.