Bitcoin based its foundation on its cryptographically secure ledger, unique assets model, and P2P technology. It led to a new architectural era that helped in building massively scalable and profitable applications, a new type of software referred to as decentralized applications (Dapps). Now let's go through the three types of applications and their differences. Most of the applications that we use are based on a centralized or client-server model. A few discs are distributed, but now more and more are becoming decentralized. 

The following diagram demonstrates the differences between these three types of software:

Let's now look into the following different types of applications mentioned in the preceding diagram:

• Centralized systems: Centralized software or systems are extensive. These are single instance systems running in a standalone system. The decisions for the system goal are created in the central mechanism and are then transferred to the executive components or people. They do everything in a single node. All executives rely on the central mechanism to take actions, for example, traditional corporations, wherein we have just one CEO or CXO who governs the entire corporation or central laws of a nation. Federal reserve authorities and financial institutions are other examples of centralized systems. Most of the services are found on the internet. 
• Decentralized systems: Decentralized systems run on a P2P network of computers instead of one computer or single instance. It means that not one single entity has control over all the processing. Decentralized computing is the allocation of resources to each and every workstation on hardware and software. Basically, none of the nodes inform any other node on what is to be done. Decentralized systems bring decision locality, which means that the system's components operate on local information to accomplish goals, rather than the result of the central ordering influence. By nature, this implies that it is distributed among various parties. A key point about decentralization is that there is no central point of control. No one entity controls the others, which is why we said that no node is informing any other nodes of what to do, for example, BitTorrent, which was used for downloading large video files or movies. Blockchain, for that matter, is a classic example of a decentralized system. 
• Distributed systems: Large internet application services are distributed, but most of them are centralized because the company running them can alter or stop the system all the way, which brings us to an important aspect of distributed systems. The distributed system consists of autonomous components connected using distribution middleware. These components communicate with each other in order to achieve the same goal. The components are located on the networked computers, and they communicate and coordinate their actions by passing messages. Distributed means not all the processing of the transaction is done in one simple, single, or same place. This does not mean that those distributed processors aren't under the control of a single entity. State-level governments are a classic example of distributed systems. Gas stations, for that matter, are again another example. When we think of a gas station, we know that there are Shell stations all over, yet not all gas stations are Shell, which brings us to another important aspect wherein decentralized systems are also distributed systems, but every distributed system does not necessarily have to be a decentralized system.