What is the main difference between federal and confederal systems of government? In a federal system there is no centralized authority, while in a confederal system power is distributed equally among the states. In a federal system there is no centralized authority, while in a confederal system local offices give advice to a centralized authority. In a federal system there is centralized authority, while in a confederal system power is distributed equally among the states. In a federal system power is distributed equally, while in a confederal system the states have less authority than the central government.