System and method for reduction of data transmission in dynamic systems using causal graphs

Methods and systems for managing data collection in a distributed system are disclosed. The system may include a data aggregator and a data collector. The data aggregator may aggregate data collected by the data collector. To reduce the computing resources used to aggregate data, the data aggregator and data collector may implement a multi-stage data reduction processes to reduce the quantity of data transmitted for data aggregation purposes. The multi-stage data reduction process may include implementing twin inference models at the aggregator and collector, identifying relationships in the data collected by the data collector, transmitting a portion of the collected data to the data aggregator based on acceptable level of error for use of the collected data, and reconstructing the un-transmitted portion of the collected data at the aggregator. The reconstructed portion of the collected data may include the acceptable level of error.