Centralized Systems

Centralized systems refer to structures where a single central authority or location makes decisions and controls processes. In this setup, all data, resources, and operations are managed from one point, which facilitates streamlined decision-making and uniform policy enforcement. While centralized systems can enhance efficiency and consistency, they can also create vulnerabilities; if the central authority fails, the entire system may be affected. Common examples include traditional banking, where a central bank oversees transactions, and computer networks where one server manages data for multiple users.