Can you explain the concept of BGP confederations

A fully meshed iBGP network becomes complex as the number of iBGP peers grows. You can reduce the iBGP mesh by dividing the autonomous system into multiple subautonomous systems and grouping them into a single confederation. A confederation is a group of iBGP peers that use the same autonomous system number to communicate to external networks. Each subautonomous system is fully meshed within itself and has a few connections to other subautonomous systems in the same confederation.