A "32-bit" system refers to the way a computer processes data, specifically using 32 bits as the unit of information. This means that the computer can handle data in chunks of 32 bits at a time, which affects its performance and memory capacity. A 32-bit processor can address up to 4 gigabytes of RAM, limiting the amount of memory available for applications and tasks. In contrast to 64-bit systems, which can manage larger amounts of memory and perform more complex calculations, 32-bit systems are generally slower and less efficient for modern applications. Many older software programs and operating systems were designed for 32-bit architecture, but most new software now favors 64-bit systems for better performance.