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The word "databases" is composed of two parts. "Data" meaning something that can be passed around and "basis" meaning a place where something stands. In a technology context, it would refer to a place where data can be placed. The two types are flat-file and relational.
A flat-file database consists of a simple single file. This type of database is characterised by its simplicity, speed and versatility. By versatility, it is meant that a flat-file database is multi-purpose as it can be opened by many.
 A relational database is complicated, slow and specific (i.e. with a specific purpose). In it, there are many complicated relationships between lots of data.