What is the Difference Between OLAP and OLTP?

The main difference between Online Analytical Processing (OLAP) and Online Transaction Processing (OLTP) lies in their purposes and methods of processing data. OLAP is used for complex data analysis, while OLTP is used for real-time processing of online transactions at scale. Here are some key differences between OLAP and OLTP:

Purpose: OLAP systems are designed for analyzing aggregated data and generating reports, while OLTP systems are designed for processing real-time transactions such as orders, inventory updates, and customer account management.
Data Architecture: OLAP systems use a multidimensional schema, making them well-suited for complex queries that draw from multiple data sets, such as historical and current data from various sources, including OLTP sources. On the other hand, OLTP systems store transaction data in a relational database, optimized to handle high-volume, real-time transactions.
Data Source: OLAP systems typically consist of historical data from various databases, while OLTP systems consist of only operational current data.
Method Used: OLAP systems make use of data warehouses, while OLTP systems make use of standard database management systems (DBMS).
Query Types: OLAP systems handle complex queries, while OLTP systems handle simple standardized queries.
Response Time: OLTP systems prioritize quick response times, often in milliseconds, while OLAP systems may take seconds, minutes, or even hours depending on the amount of data to process.
Normalization: In an OLAP database, tables are not normalized, whereas in an OLTP database, tables are normalized.

Some examples of OLTP systems in action include ATM transactions, online banking, online airline ticket booking, and sending a text message. OLAP systems, on the other hand, are used for data mining, analytics, and decision-making.