Forgive my ignorance. Why isn't Bluesky a nostr client that only pulls from the Bluesky relay?

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Because Bluesky is working on the AT protocol

Would be great for someone that understands both to share a little more about the differences between AT (“Authenticated Transfer Protocol”) and nostr.

A quick read indicates to me that they are similar.

What is the difference between the protocols? And why build a competing protocol?