From my understanding, Damus (nostr?) is integrated with Bitcoin’s chain, right?

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No, it just has the ability display and create (via API) bitcoin lightning invoices. Transactions happen outside of Damus a most client. Nostr is a protocol.

None of it is on bitcoin’s blockchain.

Okay, so it’s like a platform using Stripe as the payment processor.

From my learning nostr is similar to Mastodon in that nodes can be spun up to host the platform, I’m definitely looking into wallets now!

Yeah, it’s a bit different in that there are no instances. Nostr is a protocol that any client can connect to and you choose your own relays. In theory you could just have a relay for yourself and those you invite that no one else can publish to, but that’s not how it’s generally used.