A centralized database is a single database that is stored and managed in one location, typically on a server. This setup allows multiple users to access and manipulate the data from different devices, but all changes are made in one central place. Centralized databases are often used in businesses to ensure that everyone is working with the same information, which helps maintain data consistency and integrity. In a centralized database system, data management tasks such as backups, updates, and security are handled in one location. This can simplify administration and reduce the risk of data loss. However, it can also create a single point of failure, meaning that if the central server goes down, access to the data may be lost for all users.