Host-based systems are computing environments where the main processing occurs on a central server, known as the host. Users connect to this host through various devices, such as personal computers or terminals, to access applications and data. This setup allows for centralized management, making it easier to maintain software and security. In a host-based system, resources like storage and processing power are concentrated on the host, which can improve performance and efficiency. However, it also means that if the host experiences issues, all connected users may be affected. This architecture is commonly used in enterprise environments for its scalability and control.