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 i vote no because tight coupling creates hard to extend architectures 
 I'm not talking about technical coupling, but about coupling within the domain. The same people are running the relay as the client 
 it's an interesting idea but exceedingly simple to implement, literally just add new thread to the startup code that launches a web server

it has some nice privacy preserving effects so there's that too, but it is a shared resource, so it has other kinds of security issues to concern yourself with (users on the same server finding ways to get at other users data) 
 How does that work? Is it a proprietary thing? 
 It's this thing: https://github.com/nostr-protocol/nips/pull/1079

The instances are white-labeled coracle/triflector deployments that are hardcoded to talk to each other. I'm going to make a video about this soon. 
 the client surely has to derive a private key from the invite though if i understand the proposal, and this private key needs to be stored by the user for security against loss

i think a signed code would be more secure, so it would be verifiably linked to a privileged user on the relay (like giving the relay an identity, this is something i'm working on right now), what's to stop a permutation attack if the string is short enough?