I don't know how the algorithm works with respect to linkbuilding but I would imagine that if you did a lot of 3 way linking, it would be relatively easy to see patterns whereas if you raise the order of linking to n+1-way linking, it should be more difficult to detect patterns of link trading which Google is trying to crack down on. That being said, I've had good success using 3-way linking so I think it's still an effective SEO strategy.
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