Centralized systems are structures where a single central authority manages and controls all operations and data. This means that decisions, resources, and information flow from one main point, making it easier to maintain consistency and enforce policies. Examples of centralized systems include banking systems and government databases, where a central entity oversees transactions and data management. In a centralized system, users typically rely on the central authority for access and support. While this can streamline processes and enhance security, it may also create vulnerabilities, as a failure at the central point can affect the entire system. Examples of potential issues include server outages or data breaches.