A transaction is a process where two or more parties exchange goods, services, or money. For example, when you buy a coffee at a café, you give money to the barista, and in return, you receive your drink. This exchange is a simple transaction that involves both a buyer and a seller. In the world of finance, transactions can be more complex, involving banks and digital platforms. When you transfer money to a friend using a mobile app, that action is also a transaction. It ensures that both parties fulfill their part of the agreement, whether it's exchanging cash or services like bank transfers or online shopping.