What is an OLTP Database?

OLTP or online transaction processing databases are a crucial tool for data management and database systems. If you are using digital technology in the business sense, you may have these in place. This guide will discuss the question of “what is an OLTP database”.

If you manage data on a regular basis, you want to understand how certain functions work. We’ll discuss which industries use OLTP databases to their advantage along with the benefits of using them. One last thing, we’ll also discuss the difference between OLTP and OLAP. Let’s dive right in and talk more.

So what is an OLTP database anyway?

OLTP or online transaction processing databases are used in applications that manage transactions in a business. In particular, these will be used for data entry and real-time retrieval. OLTP databases will be used to handle a large amount of data that is quick and interactive - especially from multiple users at the same time.

What are the characteristics of OLTP databases?

Now that you have a basic understanding of what OLTP databases are, we’ll delve into the list of characteristics. Without wasting time, let’s take a look at what they are:

They are used for transactional purposes

As mentioned earlier, OLTP databases are often found in transactional apps. OLTP databases will help you facilitate and manage these business transactions with ease. Tasks you can perform with OLTP include but are not limited to order processing, banking transactions, and inventory management. These will be perfect for businesses that are in the retail industry or even in eCommerce.

Normalized data structure

An OLTP database will use a normalized data model. It will be created for the purpose of ensuring the integrity of the data you handle along with minimizing redundancy. You’ll be able to break down the data into smaller datasets while preventing any kind of duplication while keeping things efficient.

Concurrency control

OLTP databases will have mechanisms that will enable the ability for it to handle multiple transactions all at once. This is due to the abilities it has like multi-version concurrency and locking. These will be instrumental in keeping the data integrity satisfactory and consistent.

High throughput but low latency

OLTP systems will be optimized for this. With high throughput and low latency, it will be able to handle large volumes of transactions with speed and efficiency. Thus, the response times will be fast - to the point where it can take milliseconds - making it as real-time as possible with every interaction.

It’s ACID compliant

ACID stands for Atomicity, Consistency, Isolation, and Durability. An OLTP database will need to adhere to the ACID properties to ensure that all transactions are processed reliably. These transactions are still processed even if your system experiences interruptions or failures.

What industries typically use OLTP databases?

There are several industries that can rely on OLTP databases and the powerful technology that makes it all possible. Let’s take a look at the most common ones:

Retail and E-Commerce

This industry handles countless transactions day in and day out. Specifically, they need these databases in order to manage online transactions, manage inventory, process orders, and interact with customers. It’s a Swiss-army style kind of tool that can be a blessing for businesses in this industry - especially on days like Black Friday and Cyber Monday when the number of transactions will be insanely high compared to any other day of the year.

Banking and finance

Obviously, the banking and financial industry lives and breathes financial transactions. From the first hour of daily business to the last, it needs a database that can handle the crazy amount of transactional data that comes through. In this situation, OLTP databases will be able to process deposits, withdrawals, and fund transfers. Account management will be a lot easier as well.

Healthcare

In healthcare, OLTP databases will be used for scheduling appointments, managing patient records, billing, and similar activities. Before going further, it’s always a good idea to make sure that your data systems are compliant with HIPAA and similar regulations. When it comes to sensitive data, you must take the necessary measures to protect it.

In healthcare, a patient’s medical history should not be disclosed at will. That’s because HIPAA prohibits this to ensure that it remains private.

Telecommunications

Companies like Verizon, T-Mobile, and other companies will utilize OLTP databases. Specifically, they’ll use this for the purpose of processing billing transactions, call detail records, allocating network resources, and subscriber management. The good news is that it won’t keep track of any text messages you send to your friends, family, or anyone else - so there’s that.

Online gaming

Platforms will use databases for many purposes. They include in-game transactions, user account management, real-time gameplay data, player interactions, and other activities. OLTP databases will be a huge blessing for those managing data that is associated with popular gaming titles such as Grand Theft Auto Online, Call of Duty, and others.

OLTP vs OLAP: What’s the difference?

Some may confuse OLTP with OLAP. Therefore, we’ll use this section to set the record straight. So let’s take a look at the difference between the two:

OLTP handles large volumes of transactions in real time that are short and interactive.

OLAP databases are designed for supporting queries and aggregations that are complex. Aside from this, it also takes care of the analytical processing side of things. But nonetheless, it is useful for business intelligence and making critical but informed decisions that can affect the direction of your business.

Let Oamii Tech handle your database needs

When it comes to business and your database needs, Oamii Tech will be able to handle them accordingly. If you have the questions, we’ll be able to provide you with answers. We have helped businesses - small and large - with their technical needs.

Whether it’s cloud computing, database management, or both - Oamii Tech has you covered. Want to know more about what we can do for you? Don’t wait - contact us today and we will be more than happy to help.