For a really good annecdotal description (and ensuing discussion) of the current state of "federation" on #Bluesky, check out this really informative thread from @span mcc:

https://mastodon.social/@mcc/115204933163360398

"Imagine a hypothetical comic artist, "Gertrude". One day a hypothetical podcaster named "Louis CK" dies, and "Gertrude" posts something rude about this. Bluesky bans her..."