Did you know that data is the fuel that powers today's digital world? Every time you browse the internet, make an online purchase or even send a simple text message, you're generating data. In fact, according to recent statistics, the amount of data generated globally is expected to reach a mind-boggling 175 zettabytes by 2025.

In this data-driven era, it's crucial to ensure that the information we rely on is accurate, consistent, and trustworthy. That's where ACID and database transactions come into play. But what exactly is ACID? ACID is an acronym that stands for Atomicity, Consistency, Isolation, and Durability, representing the four core properties that define the reliability of database transactions. Think of it as the set of rules that governs how data is handled, ensuring that every transaction is treated as a complete unit and that the database remains in a consistent and reliable state.

Explore here Common Challenges in Database Design and Development and How to Overcome Them

In this blog, we will take a deep dive into the world of ACID and explore its importance in database transactions.

ACID Properties: Safeguarding Data Integrity

Understanding ACID Properties and their importance in database transactions

ACID, an acronym for Atomicity, Consistency, Isolation, and Durability, constitutes the foundation of data integrity. Let's decipher ACID properties of transaction in DBMS (Database Management System):

Atomicity: Atomicity ensures that the entire transaction is treated as a single unit. Did you know that an average of 69.99% of online shopping carts are abandoned before completing the transaction? This data comes from a study conducted by Baymard Institute, which analyzed shopping cart abandonment rates. Imagine you're making an online purchase.  If any part of the transaction fails, such as an error in processing your payment, the entire process is rolled back, ensuring that no partial or inconsistent data remains.

Consistency: Consistency guarantees that your data remains in a valid and expected state throughout a transaction. As per IBM’s estimate of the yearly cost of poor quality data, in the US alone, in 2016 was $3.1 trillion. For instance, in an airline reservation system, when you book a flight, the consistency property ensures that the seat availability is accurately updated and that your booking is reflected consistently across all relevant systems.

Isolation: Isolation ensures that each transaction is executed independently, without interference from other concurrent transactions. This prevents conflicts and maintains the integrity of the data. For example, when two users simultaneously update their contact information in an online directory, isolation ensures that their changes don't clash, and the final result reflects each user's update separately.

Durability: Durability ensures that once a transaction is committed, its changes are permanent, even in the face of system failures or power outages. Your data is reliably stored and protected, ensuring that no valuable information is lost.

The Importance of ACID in Database Transactions

Transactional databases need ACID properties, especially in fields where data security is very important.

Healthcare: Think about the healthcare field, where it's important to keep correct and regular information on patients. Recent studies of medical errors have estimated errors may account for as many as 251,000 deaths annually in the United States (U.S). ACID traits make sure that when a doctor makes changes to a patient's medical history or prescribes medicine, the changes are accurately recorded and preserved.

Finance: In the same way, ACID is a very important part of making sure that financial transactions are accurate. Did you know that a single trading error caused Knight Capital Group, a prominent financial services firm, to lose $440 million in just 45 minutes? The incident occurred in 2012 when a faulty software update led to a malfunctioning trading algorithm, resulting in numerous erroneous transactions. This staggering loss highlights the critical role of ACID properties in finance databases.

Exploring the role of database transactions in ensuring data consistency and integrity

Demystifying Database Transactions

One or more database operations make up a database transaction, which is a logical unit of work. There are three steps to it:

The Beginning: At the start of the process, a request is sent to the database system. When you place an online order, for example, a transaction is started to change the inventory and handle your payment.

The Middle: In this step, the database system does the operations that were asked for. For our example of an online sale, the system takes the things you bought out of stock, updates your payment status, and sends you an order receipt.

The End: The fate of the transaction is decided in the last step. If everything works, the transaction is committed and the changes are made permanent. But if any operation fails, the transaction is rolled back and all changes are undone, putting the database back to how it was before.

The ACID Shield: Ensuring Data Consistency

ACID properties act as a shield, ensuring data consistency and integrity during transactions:

Atomicity in Action: Let's say you want to buy musical tickets. If the transaction fails because of any problem with the payment, the atomicity feature makes sure that no tickets are given out. This prevents customer records and ticket access from being inconsistent.

Consistency for Reliability: In an online banking scenario, consistency makes sure that when you move money from your checking account to your savings account, the correct amount is taken out of one account and the same amount is put into the other account. This keeps your finances in a balanced and consistent state.

Isolation for Uninterrupted Transactions: Imagine a situation in which several users change their shipping addresses at the same time on an e-commerce site. Isolation stops conflicts by making sure that each user's changes are handled separately and properly reflected in the final data.

Durability: The Backbone of Reliability: Once your flight ticket buy is confirmed, durability makes sure that the changes to the transaction are saved and kept safe, even if there are system failures or other unexpected problems.

ACID vs. BASE: Comparing different transaction models in databases

ACID vs. BASE: A Clash of Philosophies

The ACID properties offer strong consistency, but the BASE model (Basically Available, Soft state, Eventually consistent) is an alternate option. The BASE model gives up instant consistency in exchange for high availability and the ability to handle partitions. So, it can be used for things like social media sites that can deal with eventual and not instant consistency.

Choosing the Right Path: Use Cases and Considerations

ACID properties are a must in fields like banking, healthcare, and e-commerce where data security is very important. Financial institutions depend on ACID properties to make sure that their transactions, inventory management, and legal requirements are done correctly. On the other hand, the BASE model is used in big data handling and distributed systems. In this case, being consistent is less important than availability and scalability.

Netflix follows the BASE transaction model for seamless streaming experiences, prioritizing availability and scalability. In contrast, Amazon, a leading e-commerce giant, relies on ACID transactions to guarantee data consistency and reliability for its customers' shopping experiences. Both companies have successfully implemented transaction models that align with their respective industries and prioritize the specific needs of their users.

In the digital world of today, ACID and database operations make sure that data is correct, reliable, and consistent. By knowing the power of ACID specifications and using them to their advantage, organizations can make sure that their important information stays correct, trustworthy, and safe.

As technology keeps changing, new transaction models like BASE (Basically Available, Soft state, Eventually consistent) may appear. These might have different trade-offs between consistency and availability. But ACID is still the gold standard for systems that are very important and need strong promises that the data is correct.

By using ACID, organizations can build strong, safe applications that can handle the difficulties of a world that is constantly changing and based on data. From financial institutions to healthcare companies, it is very important to keep records accurate. ACID gives a framework for how to do it.

Read our blog, How Normalization Shapes the Foundation of Robust Database Design