



The importance of this functorial characterization is that we can form a functor category C^{CQ}. The problem, however, is that internal compositional quivers don't necessarily have to have nice input domains A \times_O A. This is why to have an internal magmoid, we must have a compositional quiver diagram with the property that the composition domain is the pullback A \times_O A.
In other words, this means that in the compositional quiver diagram A \times_O A and the morphisms 1 and 2 form a universal limiting cone for the pullback. This leads me to an interesting idea: functors with the property that certain subcones within the functor, described as subdiagrams, are universal. This can be used for example to characterize whenever an object in a diagram is a product or a coproduct. Something like this would make for an interesting data structure for those interested in implementing category theory on the machine.
To form an internal category is a little bit more involved. We can always add identities to an internal magmoid diagram, by adding another identity morphism going from objects to arrows. To make that unital magmoid into a category also requires that we satisfy associativity and the unit laws. Rest assured, however, that internal categories can be formed in Sets^{\to} because it has all pullbacks, and if there is anything interesting to be said there I will be saying it eventually. For now these are just some of my thoughts on internal magmoids and related notions.
A key takeaway is that everything should be represented by a functor. Natural transformations for example are simply functors from a category in to an arrow category, so they also have nicely defined functorial semantics. If we take categories to be something like functors or diagrams internal to some category, that is a step forwards too. While internal categories could be just some collection of objects and arrows satisfying some axioms, if we can make them in to special types of functors that is most convenient. Functors are the ideal structures we should work towards dealing with.
References:
internal categories
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