the knx is a slow speed bus that uses 2 core wire to carry power and signal combined, and can be connected linearly, star, or a combination of both as needed
the 2 cores from a knx power supply go to the 2 pins on the miniserver, then 2 cores again to each knx device, pretty much whatever wiring pattern you need
since most loxone installs would have light switch locations star wired back to the miniserver using cat5/6/7 to connect to digital inputs, the easiest thing to do is wire all locations like this, then simply swap out some normal switches for knx and reconnect the cat5/6/7 for that switch at the miniserver end to its knx inputs (and install the knx power supply adjacent to the miniserver)
there is a knx standard wire, but lots of people use cat 6/7 for knx loxone install, which enables the same cable to be used for conventional loxone 24v switches as well, or the extra cores to link to other sensors such as 1-wire sensors (although some knx switches such as mdt glass ones include knx temperature sensors anyway)
there is lots of argument about whether cat6/7 is sufficient for knx, and it certainly is from a signal/frequency spec, but the thicker cat7 fits the connectors easier and ive not personally experienced any problems doing this. i guess on a massive office-size knx install you should probably use the correct cable, but i dont think its necessary for a domestic loxone/knx combination
knx a very elegant way of adding high quality visually appealing switches and controllers to a loxone install, and some devices have feedback leds, displays for text and outputs etc so saving a lot of loxone inputs and outputs.