Emerging Technologies

Centralization

Definition

Centralization is the concentration of control of an activity or organization under a single authority. In technology, it refers to systems that are controlled by a single entity or run on a single server or cluster of servers.

Why It Matters

Centralized systems are often more efficient and easier to build and update than decentralized systems. Most of the applications and services we use today are centralized.

Contextual Example

Facebook is a centralized social network. The company has complete control over the platform, the user data, and the rules of engagement.

Common Misunderstandings

  • The main drawback of centralization is that it creates a single point of failure and a single point of control. If the central entity fails or acts maliciously, the entire system is affected.
  • It is the opposite of decentralization.

Related Terms

Last Updated: December 17, 2025