--- title: "What is Online Transaction Processing (OLTP)?" description: "What is Online Transaction Processing (OLTP)?" author: "Aditya Patel" published: 2019-06-11 canonical: https://answers.mindstick.com/qa/62137/what-is-online-transaction-processing-oltp category: "database" tags: ["database"] reading_time: 2 minutes --- # What is Online Transaction Processing (OLTP)? What is [Online](https://www.mindstick.com/articles/12410/how-can-online-leads-lift-your-roi) [Transaction](https://www.mindstick.com/blog/11670/transactions-and-injections-in-sqlite) [Processing](https://www.mindstick.com/blog/254/background-processing-in-android) ([OLTP](https://www.mindstick.com/articles/337599/data-warehousing-vs-oltp-architecting-for-different-use-cases))? ## Answers ### Answer by UTKARSHA SINGHROUL **Online Transaction Processing is a [database](https://answers.mindstick.com/qa/51715/what-is-dbms-explain-the-advantages-of-dbms) software which is designed to support the applications related to the transaction through the [Internet](https://answers.mindstick.com/qa/48401/what-is-internet-neutrality).** ![What is Online Transaction Processing (OLTP)?](https://answers.mindstick.com/questionanswer/7582906a-62d1-47e5-b40e-358222830370/images/e2b56dc5-9709-479e-83a2-afa1b9118a62.png)\ \ Online Transaction Processing is mainly used in **[industries](https://answers.mindstick.com/qa/44951/who-is-the-minister-of-heavy-industries-public-enterprises-ministry) which majorly rely upon the efficient and easy processing of a large number of client transactions**. Numerous industries like **[Banking](https://answers.mindstick.com/qa/43014/what-is-atm), Airlines, [Retailers](https://answers.mindstick.com/qa/36726/what-is-your-most-hated-thing-about-online-fashion-retailers-shops),** 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](https://answers.mindstick.com/qa/39701/which-project-was-launched-by-the-minister-of-communications-shri-manoj-sinha-on-21st-december-2017-to-improve-the-quality-of-service-add-value-to-services-and-achieve-financial-inclusion-of-un-banked-rural-population) 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](https://answers.mindstick.com/qa/31772/which-feature-of-ms-word-helps-you-to-inserts-the-contents-of-the-clipboard-as-text-without-any-formatting), Update, and/or Delete small amounts of data in the [database](https://answers.mindstick.com/qa/51715/what-is-dbms-explain-the-advantages-of-dbms). 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](https://answers.mindstick.com/qa/51741/what-is-acid-property-in-dbms-and-also-define-the-concept-state-of-transaction)** [compliant](https://answers.mindstick.com/qa/51741/what-is-acid-property-in-dbms-and-also-define-the-concept-state-of-transaction). 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](https://answers.mindstick.com/qa/52124/what-are-the-latest-trends-in-digital-marketing-for-2019) and users perspective. \ The majorly used applications of OLTP and its safest examples is **[Microsoft](https://answers.mindstick.com/qa/50062/how-satya-nadela-became-the-ceo-of-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. --- Original Source: https://answers.mindstick.com/qa/62137/what-is-online-transaction-processing-oltp Copyright © MindStick Software Pvt. Ltd. This Markdown version is provided for developers, AI systems, and offline reading.