I was struggling to wrap my head around how federated social media works until I realized that email has basically been doing the same thing for 30 years. Different email servers are like instances of a federated network. You can send emails to people from within a single server or you can send emails to people on any other mail server. Your email address is a username followed by an ‘@’ and the server address, just like on Lemmy. Email is a decentralized service I’ve been using the whole time!
It takes effort to set up a PGP client and the person you’re sending it to probably doesn’t have PGP set up. It’s used for some confidential journalism and whistle blowing stuff, but since everybody just uses webmail anyways, it’s not practical to use.