Table 1 Comparison between federated system and centralized system.
Aspect | Federated system | Centralized system |
---|---|---|
Data Storage | Local devices (distributed) | Centralized database |
Data Exchange | No raw data exchange, only model updates | Raw data is continuously sent to the central server |
Privacy | High (data remains on device) | Low (data stored centrally, risk of breaches) |
Communication | Optimized for model updates | High bandwidth needed for data transfer |
Performance | Slightly lower due to decentralized data | High, as the model accesses the complete dataset |
Use Cases | Healthcare, finance, IoT devices | E-commerce, social media, large-scale data analytics |