In blockchain terms, ‘distributed’ means a system where all the proceedings are not managed in a single place but by different entities in a distributed manner. For instance, blockchain is a distributed network which means the transaction ledger is distributed among multiple nodes which are responsible for different transaction processing within the system.
 

A distributed system may be regarded as the branches of a single entity which may or may not be controlled by a centralized entity. 

In the simplest terms, a decentralized system is the one where not one single (centralized) entity has all the controls or the power to make all the decision. The controls in such a system are usually distributed among various entities so that it is not centralized with one person. The benefit is that since the control is distributed, not one entity can make a decision for other involved parties. 

Take the example of a blockchain system where the right to add, update or delete information is distributed among thousands of nodes in the network, who all have to agree for a transaction to be processed. In short, the power is not centralized with a single entity. 

The basic difference between decentralized and distributed systems is that a distributed system doesn’t necessarily have to be decentralized. It may be controlled by a single entity (centralized) or multiple distributed entities (decentralized), but the actual system has to be distributed among multiple places. 

For a decentralized system to work, it must be distributed in nature. So, a decentralized system is basically a sub-entity of distributed systems. 

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