when selfhosters can just help each other storing parts of others backup.
That's essentially what Storj, Sia, etc.. are for, they're decentralized storage systems where users can contribute storage to the network which automatically distributes data over all the 'hosters'.
LXCs are more an alternative to VMs if your use-case supports it.
Docker is its own thing with pre-made application images.
VMs barely use more resources than LXC, debian minimal probably needs another 50MB of RAM in a VM vs LXC and that's about the only difference. It matters at scale but for home use it really doesn't IMO.
That said LXC has some benefits over a VM of being able to pass through mounts and parts of devices, those can be useful for Frigate where you want to use Intel Quicksync or OpenVINO and still share it with the host and other containers, because you can't do that on a VM unless you have a device you can dedicate to the VM only. You can also bind mount a directory on the host to a directory inside the container which is useful for sharing files between multiple containers.
I like the concept. But something without any central admins is probably going to be full of all kinds of awful stuff, and I don't want to have to spend time strictly moderating my own feed, because if my client happens to cache anything illegal then I'm now potentially distributing that illegal content P2P which is a huge problem.
The mention of cryptocurrency or blockchain also provokes quite a negative feeling, it's basically just a haven for scams and useless things, and any kind of integration with it I do not want to be involved with.
The thing with any of the available methods is someone can save the content easily on their end, so it's only self-destructing in terms of the server it's stored on.
Not great. It's missing discord features like screen sharing and voice rooms (only sort of has them through a third party app, Jitsi, but that experience is... not great).
It also has moderation issues, lacking tools needed to keep spam out and easily control it when it does get in.
I recently deleted my account because there was a spam wave sending out room invites to anti-trans named rooms, and there's no way to mass ignore, you have to click on every invite, click 'ignore' and wait like 15-30 seconds for the server to process.
Related to the above it has performance issues, a lot of UI actions wait for the server to respond, so just have a long delay to them making the user experience feel really crummy.
There are also a bunch of different client apps all with their own features, one will support X but not support Y and the other way around for another app, and there's no guide on what app to use so that's confusing.
Overall it feels like alpha or very early beta software, it works if you're willing to deal with a lot of headache.
That's essentially what Storj, Sia, etc.. are for, they're decentralized storage systems where users can contribute storage to the network which automatically distributes data over all the 'hosters'.