Fediverse is a portmanteau of federated and universe. It is basically a network of servers that can communicate with each other using open protocols (like ActivityPub). There is no single person or thing in control of the network. Individuals can participate in the network through their own servers or by joining servers that already exist.
Mastodon is an example of a federated network in the fediverse for microblogging. This is in contrast with something like Twitter which is a closed system entirely controlled by Twitter.
The fediverse is attractive because it gives individuals more control over their experience and data (see what’s happening over at Twitter right now).
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