Overview
The theory is motivated by the observed similarities between the brain structures (especially neocortical tissue) that are used for a wide range of behaviours available to mammals. The theory posits that the remarkably uniform physical arrangement of cortical tissue reflects a single principle or algorithm which underlies all cortical information processing. The basic processing principle is hypothesized to be a feedback/recall loop which involves both cortical and extra-cortical participation (the latter from the thalamus and the hippocampus in particular).
The memory-prediction framework provides a unified basis for thinking about the adaptive control of complex behavior. Although certain brain structures are identified as participants in the core 'algorithm' of prediction-from-memory, these details are less important than the set of principles that are proposed as basis for all high-level cognitive processing.
Read more about this topic: Memory-prediction Framework