# Federation KIT

## 1. Purpose

The [Discovery](/bdi-public-documentation/readme/trust-kit/discovery.md) mechanism supports an open and loose model without a centralized register that could be searched for all existing BDI Associations. In theory, a large number of independent BDI Associations could co-exist without further governance.

Identification, discovery, authentication, trust assessment and authorization in such a perimeter-less network on a global scale requires functions to deal with previously unknown parties.

The reality of business networks is that there is an inherent tension between interoperability on one hand and competition/innovation on the other hand. Standardization lowers costs, but differentiation creates value and competitive advantages: a dynamic trade-off, shifting over time.

Federation has to acknowledge this tradeoff. In practice it is expected that BDI Associations will form federations and voluntarily agree upon common standards, roles and semantics over a group of Associations.

It is expected that a number of frameworks for controlled data sharing wil co-exist. A minimal level of interoperability that reduces unnecessary costs is desirable.


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