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The file-based approach refers to a method of data storage and management where data is stored in flat files or databases without a centralized management system. Each application may directly read and write to these files, leading to potential data redundancy and inconsistency. This approach can be simpler for small applications but often becomes inefficient and challenging to maintain as data volume and complexity grow. Overall, it contrasts with more structured database management systems that provide better data integrity and access control.

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