Confederation refers to the process by which several independent states or regions unite to form a single entity while retaining their individual sovereignty. This arrangement allows member states to collaborate on common interests, such as defense and trade, while maintaining their own governments and laws. An example of this is the Canadian Confederation, which took place in 1867 when several provinces united to form the Dominion of Canada. In a confederation, the central authority typically has limited powers, and decisions often require consensus among member states. This structure contrasts with a federal system, where a strong central government holds significant authority over the states. The Articles of Confederation served as the first constitution for the United States, highlighting the challenges of governance in a loose confederation.