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What are the differences between OLTP and OLAP?

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OLTP stands for Online Transaction Processing, is a class of software applications capable of supporting transaction-oriented programs. An important attribute of an OLTP system is its ability to maintain concurrency. OLTP systems often follow a decentralized architecture to avoid single points of failure. These systems are generally designed for a large audience of end users who conduct short transactions. Queries involved in such databases are generally simple, need fast response times and return relatively few records. Number of transactions per second acts as an effective measure for such systems.

OLAP stands for Online Analytical Processing, a class of software programs which are characterized by relatively low frequency of online transactions. Queries are often too complex and involve a bunch of aggregations. For OLAP systems, the effectiveness measure relies highly on response time. Such systems are widely used for data mining or maintaining aggregated, historical data, usually in multi-dimensional schemas.

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