The Bluesky crypto protocol is a decentralized social networking protocol initiated by Jack Dorsey in 2019 while he was CEO of Twitter. This project was designed to create a more open and user-controlled social media framework, allowing different platforms to interact with each other while giving users greater control over their data and online presence. The protocol aims to decentralize the social media landscape, reducing the dominance of centralized platforms and promoting user autonomy.

Bluesky was developed to address key issues in social media, such as centralized control, censorship, and data privacy concerns. By creating an open and decentralized protocol, Bluesky allows users to retain control over their social media identities and data, regardless of the platform they use. This initiative envisions a future where social media is not controlled by a few large corporations, but rather by users themselves, who can move their data freely between different networks.

The Bluesky protocol is built on the Authenticated Transfer (AT) protocol, which facilitates the creation of decentralized social networks. This protocol enables various social media applications to interact with each other, allowing users to maintain their connections, data, and identities across multiple platforms. The AT protocol is designed to support user-owned data and decentralized control, which contrasts with the centralized data models of traditional social networks.

Although Bluesky began as a Twitter initiative, it has since become an independent project. In February 2022, Bluesky was registered as a public benefit corporation, a move that separated it from Twitter's corporate structure. This status allows Bluesky to focus on its mission of decentralizing social media without being bound by the need to generate profits for shareholders. While Twitter, now known as X, provided the initial backing, Bluesky operates independently, with its own funding and governance.

Bluesky's independence is particularly significant in light of Twitter's acquisition by Elon Musk. Despite the change in ownership at Twitter, Bluesky continues to pursue its goal of creating a decentralized social network protocol. The project has released initial code and is actively developing its platform, with the aim of providing a more resilient and user-controlled social media environment.

The Bluesky crypto protocol represents a significant shift towards decentralization in the social media space. By leveraging the AT protocol, Bluesky aims to empower users with greater control over their data and social interactions, free from the limitations of centralized platforms. As an independent project, Bluesky is focused on building a robust and scalable protocol that could redefine how social networks operate, offering a more open, resilient, and user-focused alternative to traditional social media​