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A transaction processing system processes all transactions into and out of a business, producing real-time results. It must pass an ACID test for atomicity, consistency, isolation, and durability. It should also be reliable and accessible to limited users only.
Transaction processing system is a program or software that processes all transactions into and out of a business or enterprise. The system examines transactions one at a time, like in an automatic teller machine (ATM) that only allows one user at a time. The term “transaction” in this case does not refer only to financial aspects, but to requests for information as a whole, such as booking a flight or simply accessing an online bank account.
In direct contrast to a transaction processing system is a batch processing system. This system processes multiple transactions or a “batch” of transactions simultaneously. The main disadvantage is that processed transactions do not return immediate results.
A modern analogy is a torrent file linked to a file folder. The user cannot immediately access a file until all files in the folder have been downloaded completely. The transaction process, in contrast, produces real-time results that create more convenience and less confusion. For example, an online shopper may immediately see the number of available products dwindle as other shoppers add products to their online shopping cart.
The software or program usually undergoes an ACID test to qualify as a transaction processing system. ACID stands for Atomicity, Coherence, Isolation and Durability. Atomicity refers to the system’s ability to execute or abandon a transaction in its entirety. For example, registering for an online bank account requires the user to enter the necessary information. Leaving a field empty or closing the window, the user will lose his registration.
Consistency in a transaction processing system means that the system should operate under the bounds of database management integrity constraints. Simply put, the programming should be correct. The segregation feature means that each transaction is treated as separate and different, even if the same transactions occur concurrently. System durability means that if a transaction is successful, it cannot be reversed. In the event of a system failure, the program should still keep the data through an encrypted register.
Aside from the necessary features that pass the ACID test, a transaction processing system should also be reliable. This means that the program has little or no chance of failure. In disaster situations, recovery should be rapid and a backup system should also intervene immediately. The system should also be fully accessible to limited users only. For example, a visitor can choose which seat to take on an airline flight, but cannot cancel a seat reserved by a previous visitor, a task that only an experienced programmer or staff can perform.
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