Beginner’s Guide to OLTP and OLAP

In this blog we will be looking into the introduction of OLTP and OLAP. How it is defined and how we can relate it to real-time

Firstly, OLTP stands for On-line Transaction Processing and OLAP stands for On-line Analytical Processing

But to define OLTP and OLAP in the Simpliest of language is
OLTP is defined as “What is Happening” ie it deals with various transactions as it happens
and OLAP is defined as “What has happened” ie it deals with Stored Data.

OLTP is more of INSERT, DELETE, UPDATE, MODIFY i.e perform Day to Day Operations
But OLAP on the other hand is more of Fetching Data i.e Perform Analysis.

Take for Example a Supermarket Counter : the Counter receives payment for a particular product thus the event happening is a transaction which should be inputted into the Database
Hence it’s a OLTP.

But the OLAP is once the Data has been stored and the only Operation performed is Fetching the Data then it is said to be OLAP which can be used for
Business decision making and planning.

OLTP is a Relational Database and it’s 2-Dimensional in nature i.e Mathematically it is in the form of x and y axis
but OLAP on the other hand is a Multi-dimensional Database i.e Mathematically it is in the form of x, y, z, nth axis.

Now a question arises how is OLAP and OLTP represented? OLTP is represented in a Normalized Form and OLAP in a Star Schema or even at times in a Snow Flake Schema

OLAP Data- Structure is Designed in a Tree Format making it easy to Traverse.



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