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Shadow cascades seems to be the amount of passes used when drawing shadows. First will be a hard shadow, then out a little further with a blur filter, then further and more blur, etc. There seems to be a cutoff point where the shadows don't get smoother edges but start to double up and get darker on the edges, so don't go too far with this. You can change it while looking at your shadow on the launchpad to get an idea.
Rendering quality overrides shadow cascade setting, so if that is too low then the cascade setting will have no effect. Render quality also seems to effect the distance at which shadows pop out of existence.
Yes, it's all very confusing as these type of terms are made up on the fly. I had to test a lot to figure out what they did.
...bearing in mind that this is effectively a sim accuracy setting. If you set it too low it wont calculate the physics very accurately. The higher you set it the better the sim will simulate at the expense of processing power.
I am getting quite slow down now when launching ships and approaching my space station - must be due to parts numbers. I really hope this game gets some optimisation shortly.