Transaction Processing Systems: Application & Examples

Transaction Processing Systems: Application & Examples
Coming up next: Enterprise Software for Business Applications

You're on a roll. Keep up the good work!

Take Quiz Watch Next Lesson
 Replay
Your next lesson will play in 10 seconds
  • 0:00 Order in Our Lives
  • 0:37 Transaction Processing Systems
  • 1:31 Significance
  • 2:11 Applications and Examples
  • 3:37 Lesson Summary
Save Save Save

Want to watch this again later?

Log in or sign up to add this lesson to a Custom Course.

Log in or Sign up

Timeline
Autoplay
Autoplay
Speed

Recommended Lessons and Courses for You

Lesson Transcript
Instructor: David Gloag
In this lesson, we'll take a look at transaction processing systems, what they are, why transactions are significant, some applications, and examples of transactions.

Order in Our Lives

We live in a world where order is important. If you don't agree, just think about the last time you stood in line for tickets to a show at your favorite theater, waited to give your blood at your local hospital, or waited to pay for your groceries. As a people, we generally believe in fairness and orchestrate access to shared resources in a first-in-first-out fashion. It stands to reason that we would extend this idea to business dealings as well. This is where the idea of a transaction and transaction processing system come into play.

Transaction Processing Systems

A transaction is an exchange of goods, services, and/or communication between two sides that has an effect on each side. In the simplest case, a conversation between you and a friend is a transaction. You exchange information, and both of you are affected by the exchange. A transaction processing system is a system that repeatedly processes various transactions. Unlike the conversation example, a transaction processing system tends to be more rigid and has the following characteristics:

  • Performance - Transactions are performed as fast as possible.
  • Reliability - Transaction performance occurs like clockwork.
  • Consistency - Transactions are performed in the same way each and every time.
  • Atomic - Transactions are indivisible; once started, transactions are performed to completion.

Significance

Transaction processing is also known as real-time processing. With the characteristics previously mentioned, transactions and transaction processing are significant because they ensure a couple of key things:

  • The system is up to date - It doesn't matter when you examine it, it is as current as possible.
  • Preserve the order of occurrence - No matter when a transaction occurs, it is processed in the order it was initiated.
  • Handle multiple input sources - Even geographically diverse sources can be addressed in this fashion.

As you might imagine, this can be useful in some situations, which we'll talk about more in the next section.

Applications and Examples

Transaction processing is used in a number of applications. Most exist behind-the-scenes, so you may not be familiar with them, but there are a couple that are closer to home. These include:

To unlock this lesson you must be a Study.com Member.
Create your account

Register to view this lesson

Are you a student or a teacher?

Unlock Your Education

See for yourself why 30 million people use Study.com

Become a Study.com member and start learning now.
Become a Member  Back
What teachers are saying about Study.com
Try it risk-free for 30 days

Earning College Credit

Did you know… We have over 200 college courses that prepare you to earn credit by exam that is accepted by over 1,500 colleges and universities. You can test out of the first two years of college and save thousands off your degree. Anyone can earn credit-by-exam regardless of age or education level.

To learn more, visit our Earning Credit Page

Transferring credit to the school of your choice

Not sure what college you want to attend yet? Study.com has thousands of articles about every imaginable degree, area of study and career path that can help you find the school that's right for you.

Create an account to start this course today
Try it risk-free for 30 days!
Create an account
Support