Transaction Processing refers to the management of database transactions, ensuring that each is completed in a consistent, reliable, and fault-tolerant manner. In a transaction, several operations (such as data updates or transfers) are executed as a single unit. If any part of the transaction fails, the system rolls back all changes to ensure data integrity.

Transaction processing systems are crucial in areas like banking, e-commerce, and supply chain management, where it’s essential that operations are fully completed or not at all. ACID (Atomicity, Consistency, Isolation, Durability) properties ensure that transactions are processed in a way that prevents data corruption or loss.