this post was submitted on 27 Jun 2023
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If I understand correctly, it effectively runs your instance in whitelist mode instead of blacklist mode. To federate with another instance you have to explicitly list it as something you'd like to interact with, as opposed to what most people here are used to, where an instance federates by default, and you have to blacklist instances you want to defederate
By default, federation is disabled and the admin must enable it. Private instance and federation are mutually exclusive.