Yes but if it doesnt federate then that makes it more likely to become practically centralized. Interchanging information between independent organizations through a common channel is whats necessary here. Imagine if email only worked between people in the same company. Ridiculous concept.

Interoperability would be even better, but if even people using the exact same software just on a different server cant exchange information then thats just not a feasible solution for big organizations or governments these days.