A 32-bit system refers to a computer architecture that uses 32 bits to represent data and memory addresses. This means it can process data in 32-bit chunks, allowing for a maximum of 4 gigabytes (GB) of RAM. The system's ability to handle larger data types and perform calculations is limited compared to 64-bit systems, which can manage significantly more memory. In a 32-bit operating system, applications are designed to run within this memory limit. Popular examples of 32-bit operating systems include Windows XP and Linux. While many modern systems have transitioned to 64-bit architecture, 32-bit systems are still used in some embedded devices and older computers.