How does loot work in fallout 76?

So most of the people clicking on this post have probably played the recent beta's or have at least followed the game's progress up till a certain point. The new Fallout game will be an online multi-player one and this brings a lot of questions. I myself have played the beta for quite some hours and had an absolute blast with friends. Now that we have to wait for a bit over a week for the final release a few things came to mind about balance and specifically loot that we didn't test during said beta.

I've already done some research and know that the 'servers' will be instance based. When you start the game and click the play button the game will place you in a random server/instance (unsure if a single server hosts multiple instances and if those instances are thus linked). Now if a friend of yours is online and you want to play with him you can join his instance of the game via the social menu. This loads you into a new instance together with your friend.

Which also brings me to my balance issue.

Could players who want to farm really quick (and ruin the immersion of fallout imho) add a lot of 'random people', loot their own initial instance and just hop to those random friends for pretty much infinite loot?

• How does the looting work?
• If it's player bound what are the restrictions on different instances?

I've read that the loot may be client sided and that the mobs/npc's would be server sided. Is this true and how would that work?

Plenty of questions but I hope one of you got to test this during the beta or knows the answer.

Research

From what I understand, F76 loot is random and personal, and it respawns quickly. So if you loot a location, then join another person's group and go to that location again, you're not going to get more loot, because you already looted that location recently. Once that location respawns, you can go back there and loot again. What they mean by "instanced loot" is that every player's loot is specific to themselves.

Source: https://www.vgr.com/fallout-76-feature-instanced-loot/