Types of Transaction Processing Systems
1. Batch Processing: In batch processing, transactions are gathered and processed together at scheduled intervals, notably in groups or batches. This method involves accumulating transactions over some time and then processing them collectively as a single unit. Due to this accumulation, there’s a time delay between when the transaction takes place and when it’s processed. While batch processing is efficient for handling large volumes of transactions, it tends to have slower response times compared to real-time processing.
2. Real-Time Processing: Real-time processing involves the immediate processing of each transaction as it happens, without any delay. This means that transactions are processed instantly, and the results are available immediately. Real-time processing is essential for applications where immediate feedback is pivotal, such as online banking, e-commerce platforms, and inventory management systems. Real-time systems prioritize providing quick responses to each transaction or request, ensuring smooth and timely operations.