Well it seems experts are busy - let me, a total layman, say some thing.
1- Local means where a person has the original subscription card to offer for sharing.
2- Hop refers to a stage of onward sharing of a local card....if permitted in configuration by the earlier share-offering person. From local to first sharing person...it would be hop-1 with the second person. And if second person onward offers the same for sharing (if allowed), then the 3rd. person would be on hop-2 & so on.
3- Nodes probably means number of clients connected.
Errors or ommission on my part accepted