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The primary advantage of a dedicated server is that it provides greater control, customization, and flexibility than shared hosting or virtual private servers. A dedicated server allows the user to have complete control over the operating system, hardware, and software configuration, as well as the ability to run resource-intensive applications or services without worrying about performance degradation.
yeah pretty much sums it up
Well community servers can be a dedicated server. They could also be hosted servers, for instance a Nitrado Palworld server.