I think you're right that about the basic technique: systems in the smallest subdivided volume (a sector) are generated using the coordinates and the output of a density function and then the resulting systems are combined with a list of hand-generated and real life systems.
I think this is spot on. The folder Frontier_Developments\Products\FORC-FDEV-D-1003\Win32\Shared\StellarForge\Galaxies\MilkyWay contains an overrides file, which just from the name sounds like it is providing the hand-generated and real life systems. The rest of the StellaForge seems to contain a mix of static databases and generative processes. I assume these are all run locally but use a common seed and server timestamp to ensure everyone's galaxies are the same.
Interestingly within here there is a galaxies (plural) folder - which only contains one galaxy - the Milky Way. Makes me wonder if other galaxies may be supportable for the future... Would need a pretty big FSD to jump to Andromeda!
I feel I'm reaching a bit of a dead-end with co-ordinate identification - hoping the future API might bring something in that regard but the crowd source model isn't really going to be suitable for exploration where systems are being visited for the first time. Nobody is going to bother filling in every system they jump into, and it doesn't seem there is an alternative at the moment.
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I had had the same interrogations, and someone indicated that they were the local coordinates of your ship in normal space, unfortunately. Don't waste your time on them.![]()
I did... a bit... And came to the same conclusions!