Economics Title
Types of Databases
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Centralised Database
A database where data is managed and stored in a single location. No synchronisation is required because all data is in one location. Because of this, centralised databases are generally used in applications where it is critical that data is highly accurate and current.
Advantages: database is in a single location which makes it easy to access and manage
Disadvantages: high traffic can cause bottlenecks in servicing requests

Distributed Database
A database where data is not stored in a single location. Data is stored on different servers and a Database Management System (DBMS) is needed to periodically synchronise all data to ensure that the data is up to date. Synchronization is done in cycles, generally daily or weekly depending on the characteristics of the data. Because of this, distributed databases are generally used in applications where data does not have to be highly accurate or current.
Advantages: easily scalable and data is protected as not all of it is stored in one location
Disadvantages: more complex and expensive infrastructure