When information is expressed as knots, the knots themselves can be used as building blocks for constructing more complex knots. Far from the centre, where information is represented as directions and speeds, these additive effects cannot occur, since no building of one representation out of another can occur between individual photons. The general tendancy of the knots is to become simpler the further they are from the centre, but this is not an absolute rule. Sometimes the thrashing caused by complicated knots undoing themselves causes knots to form in adjacent photon strings. When knots are made of knots, self-reference occurs internal to the constructed knots.
All knots contain information, and knots made of knots contain information about information.
This allows two things to occur. The information can be more compacted. If I know what a racehorse is, and I know what simple odds are, I can define an each-way bet in terms of what I already know. Moreover, my knowledge after I have done this clearly shows that an each-way bet is defined in terms of simple odds. Therefore I must have understood simple odds before I understood each-way bets.