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 You analyzed it correctly.  Makes every npub a censorship-resistant dns so you can own a piece of the internet.

Where nostr is 6 nodes #pubky is 6 million.

The two systems can work together but pubky is working now.  Nostr could integrate it.  It might take a day, it might take a year, but it wont take 10 years.

Users get 10x or 100x more options.  So some are adopting early.