If the network is designed hierarchically, with each layer acting as a filter to the layer beneath it, the network can grow effectively. In this way, local traffic is kept local, and only data and information about global resources needs to travel outside the immediate domain.
Understanding that the layers are filtering layers begs the question of how many layers are required in your network. The answer is, it depends on the type of applications and network architecture, to name but a few criteria.
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