P2P vs. Hierarchical Distribution of Information
From Jeff Vail at http://www.jeffvail.net/2004/10/theory-of-power-chapter-9.html
Why Hierarchical distribution of information is inefficient
"Hierarchies become inefficient at information processing as they intensify because the number of close-proximity relays that information must cross to reach from the bottom to the top of the hierarchy quickly mushrooms. Furthermore, Wilson’s SNAFU principle states that the one-directional power-relationships of hierarchy introduce additional, intentional distortion at every relay: underlings skew information to tell their bosses what they want to hear. This process repeats again and again as information works its way up the ladder until eventually the top of the hierarchy has no clue what happens at the bottom. This results in forcing hierarchies to dedicate an ever-larger share of available resources to maintain internal communications, as anyone who has ever worked for a government or large corporation can readily attest." (http://www.jeffvail.net/2004/10/theory-of-power-chapter-9.html)
Rhizomatic structures of information distribution
"With a foundation of self-sufficiency established, a node can take advantage of a second strength of the rhizome pattern: network. Loose network connections, such as those in rhizome structures, actually demonstrate far more efficiency at information transfer and processing than the close, authoritarian connections of hierarchies, according to complexity theorist Mark Buchanan. The more intense, closely held connections within hierarchy prevent information from quickly spreading among large or diverse groups. The weaker, more distributed connections of a network can more quickly disseminate information to a much broader audience.
Networks of small, independent nodes introduce far less attenuation or distortion in information processing, compensating for their inability to stratify or exert command-and-control to the same degree as hierarchies.
In order to leverage the strength of network, we must undertake voluntary communication and information exchange, partnership-based exchange in locally specialized commodities and services, as well as broader cultural interactions between networks of rhizome nodes. Such interaction can provide many of the benefits of traditional hierarchal economies and political entities without relegating the participant nodes to a subservient relationship. They participate voluntarily, as equals—a status maintained due to the self-awareness of each node regarding the dangers of abandoning their rhizome structure in favor of stratification and hierarchy. Self-sufficient, local nodes, in combination with a few weaker, long-distance links to other nodes create information-processing and economic powerhouses—not recognizable in the contemporary, industrial sense, but instead as vibrant beacons of human potential and fulfillment. Modeled after the same architecture that makes the human brain so powerful, such a system does not represent a return to the Stone Age. Rather, this mirrors the exact architecture, the “small world” theory of networks that cutting edge economists and management gurus would love to implement—if only they could figure out a way to keep the benefits flowing into the hands of the favored few. Rhizome economies, in contrast, utilize this “small world” theory to maintain efficiency and information flow while keeping power concentrated in the hands of the many." (http://www.jeffvail.net/2004/10/theory-of-power-chapter-9.html)
More Information
See Jeff Vail's Theory of Power