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LLDsystem_design~5 mins

Balance calculation algorithm in LLD - Cheat Sheet & Quick Revision

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Recall & Review
beginner
What is the main purpose of a balance calculation algorithm in a financial system?
To accurately compute the current balance of an account by processing all transactions, ensuring correctness and consistency.
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intermediate
Why is it important to handle concurrent transactions carefully in balance calculation?
Because concurrent transactions can cause race conditions leading to incorrect balances if not synchronized properly.
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intermediate
What is the difference between real-time and batch balance calculation?
Real-time calculates balance immediately after each transaction, while batch processes multiple transactions together at intervals.
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advanced
How can caching improve balance calculation performance?
By storing the latest computed balance, caching reduces the need to recalculate from all transactions every time, speeding up queries.
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advanced
What role does idempotency play in balance calculation algorithms?
Idempotency ensures that processing the same transaction multiple times does not change the balance incorrectly, preventing duplication errors.
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Which of the following is essential to prevent incorrect balance updates during simultaneous transactions?
ASkipping validation
BIgnoring transaction order
CUsing random delays
DLocking or synchronization
What does a balance calculation algorithm typically use as input?
AList of transactions
BUser passwords
CNetwork packets
DSystem logs
Which approach is better for systems requiring instant balance updates?
AReal-time calculation
BBatch processing
CManual updates
DOffline reconciliation
What is a common technique to avoid recalculating balance from scratch every time?
AUsing random sampling
BCaching the latest balance
CIgnoring small transactions
DDeleting old transactions
Idempotency in balance calculation helps to:
AEncrypt transaction data
BIncrease transaction speed
CPrevent double counting of transactions
DReduce storage space
Explain how a balance calculation algorithm handles concurrent transactions to maintain accuracy.
Think about how to avoid two people updating the same bank account at the same time incorrectly.
You got /3 concepts.
    Describe the trade-offs between real-time and batch balance calculation methods.
    Consider when you want instant updates versus processing many transactions together.
    You got /4 concepts.