Transaction handling in GraphQL involves starting a transaction, performing multiple updates, and then either committing or rolling back based on success or failure. The process begins with startTransaction, followed by executing queries like updateUser and updateBalance. If all queries succeed, commitTransaction saves the changes permanently. If any query fails, rollbackTransaction undoes all changes to keep data consistent. This ensures that partial updates do not corrupt the database. The execution table shows each step and the transaction state changes from Active to Committed. Key moments include understanding why transactions start, what happens on errors, and why committing is necessary. The visual quiz tests understanding of transaction states and error handling.