Isn't this essentially what IPFS is?
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Nextcloud can have some sort of federation: https://nextcloud.com/federation/
I find the idea kind of neat, but not very useful
Pretty sure that's exactly what IPFS is, it's a distributed filesystem, although it's also a Blockchain-based technology so it comes with that baggage
Correct me if I’m wrong, but I don’t think IPFS itself is tied to a blockchain. That said, the creators seem to be involved in a lot of crypto stuff (including creating Filecoin on top of IPFS), so it does have blockchain baggage attached to it.
I thought the blockchain paid you for your hosting contribution and linked to the chunks on your instance so people knew where to look.
No, the latter is done via a DHT, while the former is a layer on top of IPFS (Filecoin, I guess, as verdare said). Default IPFS behaviour is that you just cache whatever you download, and serve it to others if they request the same file from the network. Basically a huge bittorrent kinda thing. You can also explicitly "pin" files, keeping them cached indefinitely, which is the closest thing to hosting the file, and that's what Filecoin incentivizes, but people also do it without Filecoin involved.
Everything is possible, look at this video called Harder Drive for examples of this sort of thing being done.
There used to be (and probably still are) entire youtube channels of apparent static or random shapes that turned out to be massive amounts of data stored as video.
Doesn’t this sound like Usenet?
The Fediverse and classical Usenet are so similar IMO. I think Usenet is just so old that nobody outside of pirates is familiar with it.
Somebody made πfs, so I don't see why ActivityPubFs wouldn't be technically possible