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One machine doing everything, or splitting it up
The code you have written so far mostly ran inside a single machine. Real services do not have that luxury. As more people use them one machine stops being enough, and if that one machine breaks everything stops.
The plainest arrangement is centralised processing: one large computer holds all the processing and all the data. Simple to build, and easy to manage with the data in one place. In exchange, if it stops, everything stops.
The opposite is distributed processing, sharing the work across several machines. One stopping leaves the rest to carry on, and you can add machines when you run short. In exchange there are more machines to manage, and you have to watch out for the data disagreeing with itself.
This lesson follows what happens once you have split things up.
centralised one machine does it all it stops, everything stopsdistributed several share the work one stops, the rest carry on