OLTP (Online Transaction Processing)

Online Transaction Processing (OLTP) is a type of database system used in transaction-oriented applications, such as operational systems. It is designed to respond to user requests and process them in real-time. OLTP systems are used for executing online database transactions that frontline workers such as cashiers and bank tellers generate, as well as customer self-service applications like online banking, travel, and e-commerce. Some key characteristics of OLTP include a high volume of concurrent users accessing data, frequent data modification, data integrity, and transactions that usually involve only a few database records and small amounts of data.

OLTP systems are optimized for read, insert, update, and delete queries, and they typically involve lightning-fast response times and the modification of small amounts of data frequently. Examples of OLTP systems include order entry, retail sales, and financial transaction systems. An example of an OLTP transaction would be a scenario where two people share a joint bank account and try to withdraw all the money in the shared account from separate ATMs at about the same time.

In summary, OLTP is an operational system that supports transaction-oriented applications in a 3-tier architecture, and it is focused on query processing, maintaining data integrity, and handling a large number of small transactions. It is important to note that OLTP systems are distinct from online analytical processing (OLAP), which is generally characterized by much more complex queries for the purpose of business intelligence or reporting rather than processing transactions.

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