Cyan2 comments on How An Algorithm Feels From Inside - Less Wrong
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Silas,
The essential idea is that network 1 can be trained on a target pattern, and after training, it will converge to the target when initialized with a partial or distorted version of the target. Wikipedia's article on Hopfield networks has more.
Both types of networks can be used to predict observables given other observables. Network 1, being totally connected, is slower than network 2. But network 2 has a node which corresponds to no observable thing. It can leave one with the feeling that some question has not been completely answered even though all the observables have known states.