A centralized system, with one main point, is generally easy to get up and running and can be developed quickly – but is often prone to failure. End users who are physically located further away from the server may experience access delays. Centralized systems also present higher levels of security risk.
Decentralized systems, with multiple main points, are more resilient than centralized systems because if one point goes down, the rest of the points can continue to operate and provide resources. However, decentralized systems are pricier, and carry similar security and privacy risks to centralized systems.
Distributed systems share ownership between users, creating equal access, more transparency, and greater security. These systems tend to be more complicated to deploy, but are more secure than the alternatives.