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Containerization in DevOps refers to the method of packaging applications along with their dependencies into a single unit, known as a container. This approach ensures that the application runs consistently across different computing environments, regardless of the underlying infrastructure. By isolating the application and its dependencies in a container, developers can achieve greater efficiency, portability, and scalability.

This method allows for a more streamlined development process, as developers can create an environment that closely resembles the production setup, minimizing the "it works on my machine" problem. Furthermore, containers are lightweight compared to traditional virtual machines, which require an entire operating system overhead, making them faster to start and more resource-efficient.

This concept contrasts with hosting applications on virtual platforms, deploying on physical servers, or managing databases, as those are broader strategies that do not specifically define the essence and benefits of containerization. Thus, the correct answer highlights the core advantage of containerization in DevOps practices, emphasizing application packaging and dependency management.