According to a recent press release from the group (Diaspora* means a brighter future for all of us):
Diaspora’s distributed design is a huge part of it. Like the Internet itself, Diaspora* isn’t housed in any one place, and it’s not controlled by any one entity (including us). We’ve created software that lets you set up and run your own social network on your own “pod” (or server) and connect your network to the larger Diaspora* ecosystem...This means you can do what you want. You can express yourself candidly, and be your authentic self. You can go by whatever name you like on Diaspora*. Pseudonyms are fine, and this both protects you (if you want to say something your boss or your parents disagree with) and opens the door to real connection.