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In this video, we answer a critical senior-level system design question: 🚨 How do you handle transactions across multiple microservices? Short answer: You don’t use traditional distributed transactions. In microservices: • Each service owns its own database • Network failures are normal • 2PC (Two-Phase Commit) reduces availability • ACID across services does not scale Instead, modern systems use: ✔ Eventual Consistency ✔ Saga Pattern ✔ Compensating Actions ✔ Idempotency ✔ State Machines In this deep dive, we cover: • Why distributed transactions fail in microservices • Eventual consistency explained clearly • Orchestration vs Choreography saga patterns • Real-world order processing example • Compensating transactions • Why idempotency is critical • Debugging sagas in production • When a saga is NOT the right solution This is essential knowledge for: Senior backend engineers System design interviews Microservices architects Engineering leads --- 🧠 Key Takeaway: Distributed transactions are not solved with locks and rollbacks. They are solved with business modeling and recovery thinking. 00:00 Introduction 00:40 Why Traditional Transactions Don’t Work 02:00 Why 2PC Fails in Microservices 03:20 Eventual Consistency Explained 05:00 What is the Saga Pattern? 06:10 Order Processing Example 08:20 Orchestration vs Choreography 10:00 Compensating Transactions 11:30 Why Idempotency Matters 12:45 Failure Scenarios 14:00 Debugging Sagas 15:10 When NOT to Use a Saga 16:00 Final Takeaway microservices saga pattern distributed transactions eventual consistency system design interview two phase commit 2pc explained backend architecture microservices transactions orchestration vs choreography idempotency event driven architecture software engineering senior developer interview #microservices #systemdesign #saga #distributedtransactions #backendengineering #softwarearchitecture