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Elon Musk Says Twitter Is Going To Get Rid Of The Block Feature, Enabling Greater Harassment
(www.techdirt.com)
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In a way, I could imagine it increasing server costs by like 0.001%, if even that, because if the algorithm finds a post to recommend but then realises it's from a blocked account, it would have to search again (ofc it's probably optimised so that it realises that at an earlier stage).
But we're talking about such small details it literally doesn't matter and is outweighed by the functionality lost one hundredfold.