What is the initial setup of a network which policies, system chaincodes, and cryptographic materials...

The application is bootstrapped knowing about a group of peers which are trusted by the application developer/administrator to provide authentic responses to discovery queries. There is the bootstrap of a peer network, during which policies, system chaincodes, and cryptographic materials (certs) are disseminated amongst participants, and the bootstrap of an ordering network. The bootstrap of the ordering network must precede the bootstrap of the peer network, as a peer network is contingent upon the presence of an ordering service. A network need only be “bootstrapped” once.