Transaction Processing System (TPS)

A transaction processing system stores and alters information regarding the transactions of a particular institution. In contrast to “batch processing,” TPS offers immediate feedback regarding individual transactions. In order to be considered a TPS, it must pass an ACID test: Atomicity, Consistency, Isolation, and Durability. These four steps ensure that all transactions are atomic (either all steps happen, or none do), consistent (each transaction is able to occur from and lead to another transaction), isolated (no operations can interfere with an incomplete transaction), and durable (transaction data must be recoverable from any form of system failure).

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