Thanks for the explanation 
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One additional point.
The farming algorithm is being reworked. Same basic principle but the actual reasons for the rewards received may not be exactly “rewards for data you supply successfully ahead of other copies”
For the test net for instance there is a system where the nodes in the section are proportionally paid rewards when the rewards are paid. Still same principle of “node stores data and the node is rewarded supplying data properly” but just not exactly the same way as before.
What will end up in the live network will likely be a part way between the two, but same principle of you get rewarded for supplying the data you are holding successfully when its requested.
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Meaning even if data was retrieved from other node, as long as you’re hosting the same chunk you’ll be rewarded too? I hope the faster node will receive a higher portion of the incentive as this will encourage farmer to upgrade their internet speed. Hence enhancing the over all speed of the network over time.
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The problem here is, “if they can”. The very poor may have no chance to upgrade. Next problem is favouring the rich and powerful.
Some mechanism to lift all boats at once would perhaps be better.
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A simple real world analogy (US centric) are tips for waitstaff at a restaurant. There are typically two models used for compensation, option 1) eacher server is responsible for X tables and receives all tips from the tables they serve, or option 2) the tips from all tables are pooled each night and divided equally by the number of servers.
Option 2 worked best when each server took on a specialized role and focused on that alone for the evening. For example, 1 server takes all orders, a different server delivers all food, a third does drinks, seating and cleanup.
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Related to this I wonder about an idealised example of a small developing country where the internet internal to the country is slightly better connected than to the outside world. Fetching data outside the country will be slow and flaky (and perhaps quite expensive if metered) vs pulling it off physically nearby nodes within the country. Can the planned caching system compensate for worldwide XOR routing in this type of “poor” relatively isolated network typically seen in some developing countries.
As I understand the network, base performance will depend on how many nodes is in the counry compared to the rest of the world. But will be no-linear depending on final parametrs of the network like section size, number of datacopies, not sure if something else.
I dont have enough info about planned caching algorythm, but I gues it should work in such a way it will help in this situation.
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