A 32-bit operating system is a type of software that manages computer hardware and software resources, using 32 bits to process data. This means it can handle a maximum of 4 gigabytes (GB) of RAM, as 2^32 equals 4,294,967,296 bytes. Common examples include Windows XP and Linux distributions designed for 32-bit architecture. These systems are generally less efficient than their 64-bit counterparts, which can utilize more memory and run more applications simultaneously. However, 32-bit operating systems are still used in older hardware and specific applications that do not require the capabilities of a 64-bit system.