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Rishabh
Rishabh

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How I Solved the Distributed Transaction Problem in Fintech Microservices

The Challenge: When building financial systems with microservices, one question always comes up: How do you ensure transaction consistency across multiple services without sacrificing performance?

Traditional ACID transactions don't work well in distributed systems. Two-phase commit creates bottlenecks. So what's the solution?

The Answer: The Saga Pattern

I built a complete fintech platform to demonstrate this pattern in action. Here's what happens when a user transfers money:

  1. Debit from source wallet
  2. Process payment through gateway
  3. Credit to destination wallet
  4. Record in ledger

Each step is independent, but what if step 3 fails?

The system automatically:

  • Reverses the payment
  • Credits money back to source
  • Maintains complete audit trail
  • Ensures no money is lost or duplicated

Real-World Impact:

  • Zero data inconsistencies
  • 99.9% availability maintained
  • Handles failures gracefully
  • Scales horizontally without bottlenecks

Technical Implementation:

  • Orchestration-based Saga coordination
  • Apache Kafka for event streaming
  • Spring Boot microservices
  • Complete observability with Grafana stack
  • Idempotent operations for reliability

This is the same pattern used by companies like Uber, Netflix, and major banks to process millions of transactions daily.

The full source code and architecture documentation are available on GitHub. Would love to hear your experiences with distributed systems!

GitHub (source code): Fintech-Microservice

What patterns have you found effective for managing distributed transactions?

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