Source code tends to follow the second law of thermodynamics, with some small differences. In software, as in thermodynamics, systems tend toward entropy: as you continue to develop an application, the source will increase in complexity. In software, as well as in thermodynamics, connected systems tend toward equilibrium: in development, this is known as the "broken windows" theory, and is generally considered to mean that bad code begets bad code. People often discount the fact that good code also begets good code, but this effect is often hidden by the fact that the overall system, as mentioned earlier, tends toward entropy. That means that the effect of broken windows is magnified, and the effect of good examples is diminished.
In thermodynamics, Maxwell's Demon thought experiment is, in reality, impossible - it is purely a thought experiment. However, in software development, we're in luck: any developer can play the demon, and should, at every available opportunity.
Maxwell's demon stands between two connected systems, defeating the second law of thermodynamics by selectively allowing less-energetic particles through only in one direction, and more-energetic particles through only in the other direction, causing the two systems to tend toward opposite ends of the spectrum, rather than naturally tending toward entropy.
By doing peer reviews, you're doing exactly that; you're reducing the natural entropy in the system and preventing it from reaching its natural equilibrium by only letting the good code through, and keeping the bad code out. Over time, rather than tending toward a system where all code is average, you tend toward a system where all code is at the lowest end of the entropic spectrum.
Refactoring serves a similar, but more active role; rather than simply "only letting the good code through", you're actively seeking out the worse code and bringing it to a level that makes it acceptable to the demon. In effect, you're reducing the overall entropy of the system.
If you combine these two effects, you can achieve clean, efficient, effective source. If your review process only allows code through that is as good or better than the average, and your refactoring process is constantly improving the average, then your final code will, over time, tend toward excellence.
Without a demon, any project will be on a continuous slide toward greater and greater entropy. If you're on a development project, and it doesn't have a demon, it needs one. Why not you?
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