Federation

From Open Risk Manual

Definition

Federation in digital technology context refers to an Organization architecture where different computing devices (and the entities using them) communicate over digital networks adhering to standards of operations in terms of information processing and exchange in a collective manner.

The motivation for individual actors to join federated architectures is to facilitate communication / reduce frictions in the exchange of information such as:

  • inability to receive all or part of a message without additional cost / effort
  • inability to correctly interpret and use a message without additional cost / effort
  • difficulty asserting Data Quality and fitness for purpose


Additional motivation comes from

  • network effects that are achievable when distinct entities federate some of their resources