Sys owns the data dictionary, i.e. Oracle supplied packages, v$ views dba_ views, all_ views, etc. Sys has all of the privileges that can get granted. System, contains most of the privileges that can be granted. It doesn't own many objects.
Davey is right.. There is no system database..
but there is a system tablespace that every oracle database have, which stores dictionary objects and is owned by sys.
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