What is transaction processor?

A transaction processor is a software component that manages and processes transactions between parties in a distributed computing environment. It ensures that transactions are properly validated, authorized, and recorded in a secure and reliable manner.

The transaction processor typically operates in a client-server environment and communicates with other components of the system, such as databases, applications, and other transaction processors, to ensure that transactions are executed accurately and in a timely manner.

Some common features of transaction processors include durability (the ability to recover from system failures), concurrency control (ensuring that multiple transactions do not interfere with each other), and isolation (ensuring that one transaction does not affect the state of another).

Transaction processors are used in a variety of applications, such as financial systems, e-commerce platforms, and supply chain management systems, where secure and reliable transaction processing is critical.