Distributed Processing is the counterpart to Centralised Processing. Each terminal in the network will have sufficient resources (Memory, CPU and Backing Storage) to run independently from the central server. The server will assign tasks to the clients who will in turn process the tasks.
Folding @ Home is an example of distributed computing. You can help scientists studying Alzheimer's, Huntington's, and many cancers by simply running a piece of software on your computer or game console. Work is downloaded from a main server executed on the local machine and then the results are uploaded back to the server.