oltp meaning uses

Oltp meaning, uses and How important it is in DBMS – 2020

OLTP stands for Online transaction processing, which is a system that typically facilitates and manages transaction-oriented applications. Understanding more easily, The banking sector also fully depends upon OLTP as well as OLAP (Online analytical processing). So below we would find three things in detail – What is OLTP meaning and it’s characteristics and Uses of OLTP and much more.


There are two protocols here one is OLTP and another is OLAP, For now, let’s get actual details on OLTP meaning.

OLTP in simple explanation

  • An OLTP  is a system which typically facilitates and manage transaction-oriented applications.
  • OLTP responds to users’ requests more quickly, ex: Requests like Credit, Debit money, and much more.
  • It is also used to manage the day to day transactions for the desired sector.
  • OLTP manages transaction-oriented applications in 3 tier architecture.

What is 3 tier Architecture?

threetier architecture is a client-server architecture in which the functional process logic, data access, computer data storage and user interface are developed and maintained as independent modules on separate platforms.

An example of a 3 tier architecture is a user login to Netflix and watches a random video.

What are the Characteristics of OLTP? 
  • OLTP works on a day to day operations or we may call day to day records.
  • AS OLTP is a part of Database management systems it uses simple and standard queries to function.
  • Through OLTP you can modify the data with Insert, update, delete statement.
  • OLTP method are only used by the Database administrators, or bank cashiers, etc.

What are the examples of OLTP?
  • Checking the current balance of your bank account online.
  • Online transactions such as purchasing a book and adding it in your shopping cart.
  • Call centers thoroughly use Oltp for updating records.
  • ATM money withdrawals, Money Transfer, Cash deposits.

# These are some of the examples of Oltp.

How Oltp is used in the Normalization process?
  • Basically, the data storage is generally done in 3NF (Third Normal Form).
  • It hardly requires less storage because it’s based on current data rather than OLAP which requires More Storage as it’s based on historical data.
  • Backup is required on a daily basis.
  • The design of OLTP is done through ER Model, and the changes are performed by industry requirements.

What are the Advantages of OLTP?

  • Manages day to day transactions of an organization.
  • Queries required to function are simple and short.
  • Multiple users can use Oltp at one time.
  • Faster Response to the user’s request as compared to Olap.

What are the Disadvantages Of OLTP?

  • If hardware failure on a System occurs the transactions performed at that time might be affected.
  • Multiple users while accessing the same data can fetch unexpected results per user.
  • For the above line written about multiple users accessing the same data, OLTP Concurrency software is available which handles the above situation that won’t let your data to be modified. But this will need a costly system design and high maintenance.
  • Probably the internet handling fees are taken due to this reason.

In the end, you can also check which one is good to use I’ve uploaded an image which contains key points of OLAP vs OLTP

Difference Between OLAP and OLTP 


difference between olap and oltp


#credit for the image is given in the image itself click on the link to read more about it.

That’s all for Oltp meaning, It’s uses, advantages, and every other aspect. Oltp process is currently used everywhere, but for decision making, OLAP is used.

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