What does it mean when a system is described as "decentralized"?

A decentralized system is one in which control and data are distributed across multiple locations rather than being managed from a central point. This structure allows for greater resilience, as there is no single point of failure; if one part of the system goes down, the others can continue to function. Additionally, decentralization often enhances security and encourages innovation, as various individuals or organizations can contribute to the system without needing permission from a central authority.

In contrast, a centralized system is managed by a single entity, which can create vulnerabilities and bottlenecks in data processing and access. A requirement for a dedicated server typically pertains to centralized systems, as they often rely on specific hardware to manage resources. Lastly, limiting user access to certain features is more a characteristic of control mechanisms rather than a defining attribute of decentralization.