Centralized system

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In telecommunications, a centralized system is one in which most communications are routed through one or more major central hubs. Such a system allows certain functions to be concentrated in the system's hubs, freeing up resources in the peripheral units. Another benefit of centralization is the ease of maintaining accurately updated lists of data that can be easily accessed from all points. Centralization's weaknesses are centered around the system's heavy reliance on a few central components; if the system's hubs are put out of operation, either accidentally or through hostile action, the system and its peripheral components are severely affected.

In the computer world, centralization most frequently refers to File Sharing and Networks.