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What is the main purpose of a transaction history in a system?

easy📝 Conceptual Q11 of 15
LLD - Design — Splitwise (Expense Sharing)
What is the main purpose of a transaction history in a system?
ATo record all important actions with details for tracking
BTo speed up the system by caching data
CTo delete old data automatically
DTo encrypt user passwords
Step-by-Step Solution
Solution:
  1. Step 1: Understand the role of transaction history

    Transaction history stores records of actions with details like timestamps and IDs.
  2. Step 2: Identify the correct purpose

    This helps users and systems track past events clearly and reliably.
  3. Final Answer:

    To record all important actions with details for tracking -> Option A
  4. Quick Check:

    Transaction history purpose = record actions [OK]
Quick Trick: Transaction history = record actions with details [OK]
Common Mistakes:
  • Confusing transaction history with caching
  • Thinking it deletes data automatically
  • Mixing it with security features like encryption

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