What is Online Transaction Processing (OLTP)?

Asked 11-Jun-2019
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What is Online Transaction Processing (OLTP)?


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Nice Question Sir Ji. - Rahul Roi12-Jun-2019

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Online Transaction Processing is a database software which is designed to support the applications related to the transaction through the Internet.

What is Online Transaction Processing (OLTP)?

Online Transaction Processing is mainly used in industries which majorly rely upon the efficient and easy processing of a large number of client transactions. Numerous industries like Banking, Airlines, Retailers, and many more. The Database systems which are used through Online Transaction Processing are usually formed in a decentralized manner in order to avoid the single point of failure and to spread the volume and boost the speed between multiple servers to avoid the loss of data.

Whereas in a Centralized manner of the database there is a risk, if the dedicated server or communication channels fail, then the entire business chain can lead to an immediate halt and might also cause loss of data. Typically an Online Transaction Processing involves Insert, Update, and/or Delete small amounts of data in the database. OLTP has a fast response time for its users.

To maintain the level of Data Integrity, Online Transaction Processing Databases use the facility of ACID compliant. ACID compliant data means to a standard set of properties which guarantee that the database transactions are being processed reliably and accurately. ACID compliant data ensures that the transaction undertaken will always be Accurate, Consistent, Isolated, and Durable.

The two major benefits of Online Transaction Processing is Simplicity and Efficiency. It reduces the paper trails and provides the faster, and accurate forecasts for revenues and expenses. Both the features of Online Transaction Processing makes things simpler from both the business and users perspective.

The majorly used applications of OLTP and its safest examples is Microsoft SQL Server which provides a flexible, accurate, and high-performance database foundation for the businesses which requires the maximum level of availability, reliability, and security for their OLTP based applications.