What is Online Transaction Processing?

OLTP or Online Transaction Processing is a software program or operating system that supports transaction-oriented applications in a three-tier architecture. It facilitates and supports the execution of massive real-time transactions in oltp database  the database.

OLTP monitors day-to-day transactions, usually in a multi-access Internet-based environment. It handles query processing while ensuring and protecting data integrity. The efficiency of OLTP depends on the number of transactions per second it can process. The OLTP system is optimized for trading edge and therefore suitable for most currency transactions.

The defining characteristics of OLTP transactions are atomicity and concurrency. Concurrency prevents multiple users from changing the same data at the same time. Atomicity (or indivisibility) ensures that all transaction steps are completed for a transaction to succeed. If one step fails or is incomplete, the entire transaction fails.

Atomic state is a computational condition in which database changes are permanent and requires transactions to complete successfully. OLTP systems support inserting, deleting, changing and querying data in the database.

OLTP system activities include collecting input data, processing data, and updating data with collected data. OLTP is usually supported by a database management system (DBMS) and runs on a client-server system. It also relies on an advanced transaction management system to facilitate multiple concurrent updates.

OLTP transaction example

OLTP systems facilitate many types of financial and non-financial transactions such as:

Automated Teller Machine (ATM)
Internet Banking Application
Book flight tickets, hotel reservations and more online.
Online and in-store credit card payment processing
order entry
E-commerce and in-store purchases
Password change and SMS
OLTP systems exist in a wide variety of industries, mainly in customer-facing environments.