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A transaction in databases is a sequence of operations that is executed as a single unit. The main idea is that either all operations of the transaction succeed or none of them are applied (atomicity).

Transactions guarantee four key properties (ACID):

• Atomicity: all operations within a transaction are either fully completed or not at all.
• Consistency: after the transaction completes, the database remains in a correct state.
• Isolation: parallel transactions do not affect each other.
• Durability: after a transaction is committed, changes remain even in case of failures.

Example: when transferring money between accounts in a bank, the transaction ensures that the deduction from one account and the credit to another happen together, to prevent loss or creation of money.