In theory, yes / kind of.
In practice, no, not really.
It uses a different protocol (AT protocol) than the Fediverse ActivityPub protocol, which is what lemmy and mastadon and pixelfed are all built on, so it is not natively interoperable with ActivityPub based Fediverse.
To do that you have to use bridging software of some kind.
Also, as others have pointed out… even if you do make the approximate equivalent of your own instance, a PDS… all of these still go through ‘Relays’, which BlueSky controls.
So… it is technically federated in the sense that it allows for anyone to make their own instance/PDS… but ultimately it is actually totally centralized.
Instead of a web or weave of many to many connections of independent admins/maintainers, the structure much more resembles a top down hierarchy that is ultimately all controlled by a profit driven corporation.
If the Relays go down, everything goes down.
If BlueSky decides they don’t appreciate your instance, they have unitary power to delist or block it, from everyone.
As compared with the Fediverse, where many different instances and communities can all pick and choose for themselves which other instances and communities they do and do not federate with, and where an outage particular to one community/instance only bricks that particular community/instance.
