Question

What is 'data warehousing' and how does it differ from a traditional OLTP database?

Q: Answer-What is 'data warehousing' and how does it differ from a traditional OLTP database?

OLTP Online Transaction Processing handles day-to-day operations withdrawals, deposits, transfers with high concurrency, small fast transactions, normalized schema. Data Warehouses OLAP Online Analytical Processing store historical, aggregated data from multiple sources for business intelligence, trend analysis, and reporting denormalized starsnowflake schemas optimized for complex queries. Banks use data warehouses for credit risk analysis, fraud detection models, regulatory reporting RBI returns, and customer segmentation.

A Data warehousing stores real-time transaction data that can be used for data analytics; OLTP stores historical data that can be used for analytics

B Data warehousing is a backup system; OLTP is the primary transaction system

C Data warehousing uses NoSQL; OLTP always uses relational databases

D Data warehousing is a subject-oriented, integrated repository optimized for analytical queries; OLTP databases are optimized for high-speed, real-time transaction processing

E There is no practical difference — both serve the same purpose

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