And if so, I can't help but think that centralized platforms will outcompete a decentralized protocol (in terms of funding, features, and so on).

And I can't decide if this is a major problem or not.

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what's the centralized platform?

I have no idea tbh!

Couldn't centralized platforms build on top of DIDs, which would make the communications layer centralized, whereas the nostr communications layer is fully decentralized?

I'm just pontificating I am not at all up to speed.