Definition: A transaction is an interaction of individuals/entities with outside entities, such as businesses (e.g., travel and sales records), public facilities and organizations (e.g., library loans), and Web sites (e.g., Internet usage). Source: OECD Source reference: https://www.oecd.org/ctp/administration/31663095.pdf Additional information: A transaction, in the context of information technology (IT), refers to a discrete unit of work or activity that occurs within a computer system or network. It involves the exchange, processing, or manipulation of data or resources between two or more entities, such as users, applications, or systems. Transactions play a crucial role in various aspects of IT, including databases, e-commerce, financial systems, and other business processes. At its core, a transaction represents a logical unit of work that must be executed atomically, meaning it should either be completed in its entirety or not at all. This ensures data integrity and consistency within the system. Transactions are typically initiated by a user or an application and involve a series of operations or steps that need to be executed in a specific order. In the European IT context, transactions are governed by various regulations and standards to ensure security, privacy, and compliance with legal requirements. For example, the General Data Protection Regulation (GDPR) sets guidelines for the processing and protection of personal data within transactions. Additionally, the Payment Services Directive 2 (PSD2) regulates electronic payment transactions within the European Union, promoting secure and efficient payment services. Transactions can take different forms depending on the nature of the activity. Some common types of transactions include: 1. Financial Transactions: These involve the exchange of money or financial assets between parties. Examples include online purchases, banking transactions, stock trading, and electronic fund transfers. In the European IT context, financial transactions are subject to strict regulations to prevent fraud, money laundering, and ensure consumer protection. 2. Database Transactions: In database systems, transactions are used to ensure the consistency and reliability of data. A database transaction typically consists of multiple database operations, such as inserting, updating, or deleting records. These operations are grouped together and executed as a single unit, ensuring that the database remains in a consistent state even in the event of failures or concurrent access by multiple users. 3. Business Transactions: These transactions involve the exchange of information or resources between different business entities or systems. They can include processes such as order processing, inventory management, supply chain management, and customer relationship management. Business transactions are essential for efficient and streamlined operations within organizations. 4. Communication Transactions: In the context of networking and communication protocols, transactions refer to the exchange of messages or data between networked devices. These transactions ensure reliable and orderly communication, often involving protocols such as TCP/IP, HTTP, or SMTP. They enable the transfer of information across networks, such as sending emails, browsing websites, or downloading files. Overall, transactions are a fundamental concept in the European IT context, ensuring the secure and reliable exchange of information, resources, and services. They are governed by regulations and standards to protect user privacy, ensure data integrity, and promote efficient and trustworthy digital interactions. Example: The application of transactions as an element or component of information is widely used in various industries within the European IT context. Here are a few examples: 1. E-commerce: In online shopping platforms, transactions play a crucial role in facilitating secure and efficient payment processes. When a customer makes a purchase, a transaction is initiated to transfer the payment information securely from the customer to the merchant. This ensures that the transaction is completed accurately, and the customer receives the purchased goods or services. 2. Banking and Finance: Transactions are fundamental in the banking and finance sector, where they are used to record and process various financial activities. For instance, when a customer transfers funds from one account to another, a transaction is created to capture the details of the transfer, including the amount, sender, and recipient. This information is then used to update the account balances and generate accurate financial statements. 3. Supply Chain Management: Transactions are essential in managing the flow of goods and services within the supply chain. For example, when a company purchases raw materials from a supplier, a transaction is created to document the details of the purchase, such as the quantity, price, and delivery date. This information helps track inventory levels, manage supplier relationships, and ensure timely delivery of goods. 4. Healthcare: In the healthcare industry, transactions are used to record patient information, medical procedures, and billing details. When a patient visits a healthcare provider, a transaction is generated to capture the diagnosis, treatment, and associated costs. This information is crucial for accurate medical record-keeping, insurance claims, and financial management within healthcare organizations. 5. Travel and Hospitality: Transactions are extensively used in the travel and hospitality sector to manage reservations, bookings, and payments. When a customer makes a hotel reservation or books a flight, a transaction is created to record the details of the booking, including the dates, room type, or flight itinerary. This information is then used to allocate resources, manage availability, and process payments. In summary, transactions serve as a vital component of information in various domains within the European IT context, including e-commerce, banking, supply chain management, healthcare, and travel. They enable accurate recording, processing, and management of essential data, ensuring smooth operations and efficient decision-making. LOST view: OV-Functional Architecture Principles Identifier: http://data.europa.eu/dr8/egovera/TransactionBusinessObject EIRA traceability: eira:InformationBusinessObject ABB name: egovera:TransactionBusinessObject EIRA concept: eira:ArchitectureBuildingBlock Last modification: 2023-07-04 dct:identifier: http://data.europa.eu/dr8/egovera/TransactionBusinessObject dct:title: Transaction Information