# Limitations of Centralized Systems

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Centralized systems dominate today’s digital landscape, but they come with inherent challenges:

* **Single Points of Failure**: Centralized servers are vulnerable to outages, cyberattacks, and data breaches.
* **Lack of Transparency**: Users have limited visibility into how their data is handled.
* **Restricted Accessibility**: Centralized platforms often impose geographical and regulatory restrictions.
* **High Costs**: Middlemen and proprietary systems increase operational costs.

![](https://t9018002986.p.clickup-attachments.com/t9018002986/cba2e787-f66a-4607-9317-5bdb62bc7534/wp2.png)


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