It allows HDFS to decrease the amount of metadata storage required per file (the list of blocks per file will be smaller as the size of individual blocks increases). Furthermore, it allows for fast streaming reads of data, by keeping large amounts of data sequentially laid out on the disk.
This is because the Name node contains the meta data of each and every file in HDFS and more files means more metadata and since namenode loads all the metadata in memory for speed hence having a lot of files may make the metadata information big enough to exceed the size of the memory on the Name node.
ndividual machines in the HDFS cluster that hold blocks of data are called datanodes.
The Namenode stores all the metadata for the file system