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# Federation
Federation is the principle of connecting smaller, partially self-governing units through a central unit that manages shared resources among them and powers over them. It generally seeks to create a multi-layer architecture in which authority lies at the most appropriate level.
Federal*ism* is generally associated with calls for a stronger central authority.
Federation and confederation are sometimes distinguished, wherein federation is a system where sovereignty lies chiefly in the central unit (such as the US federal government), while in a confederation sovereignty is understood to lie with the constiuent units (such as the European Union).
**Input:** constituent units, central unit, contracts among them
**Output:** cohesion, multi-layered authority structure
## Background
Federated structures have been widespread in various forms of government, as well as in private enterprise. Early examples include the pre-Columbian Haudenosaunee Confederation (or Iroquois Confederacy), followed by post-colonial formations in the Americas such as the United States, Mexico, and Brazil.
In the private sector, cooperative businesses frequently form federations, which are typically second-order co-ops (or nonprofit associations) whose constiuent members are smaller cooperatives or non-cooperative businesses.
Federation may be considered an implementation of the philosophical concept of subsidarity, which holds that power should reside as locally as possible to the relevant context.
## Feedback loops
### Sensitivities
* Balance between local governance and economies of scale
### Oversights
* Can exact high costs of governance among autonomous constituent units
## Implementations
### Communities
* Cooperative federations, such as Confcooperative in Italy and US "generation and transmission" electric cooperatives
* Governments in many countries
In fiction:
* [United Federation of Planets](https://memory-alpha.fandom.com/wiki/United_Federation_of_Planets) in the Star Trek franchise
### Tools
* [Fediverse](https://en.wikipedia.org/wiki/Fediverse), a set of interoperable federated social networks using software such as Mastodon, GNU Social, and Pleroma
* [Lightning Network](https://en.wikipedia.org/wiki/Lightning_Network), a scalability solution for blockchain systems that dynamically delegates authority to clusters of trusting nodes
## Further resources
* Ilten, Carla. "[Finding “meso-level” community at SASE 2017](https://organizationaldynamics.wordpress.com/2018/01/10/finding-meso-level-community-at-sase-2017/).
Center on Organizational Dynamics. January 10, 2018.