Understanding Transactions In SQL Server

Jeanne Combrinck explains the purpose and nature of transactions in SQL Server:

Distributed Transactions:
You can use Distributed transactions which specifies the start of a SQL distributed transaction managed by Microsoft Distributed Transaction Coordinator (MS DTC). This is only applicable to SQL Server and no Azure. Transaction-level snapshot isolation does not support distributed transactions.

Arguments:
transaction_name
Is a user-defined transaction name used to track the distributed transaction within MS DTC utilities. transaction_name must conform to the rules for identifiers and must be <= 32 characters.

@tran_name_variable
Is the name of a user-defined variable containing a transaction name used to track the distributed transaction within MS DTC utilities. The variable must be declared with a char, varchar, nchar, or nvarchar data type.

Jeanne also includes the important comment that nested transactions don’t really work the way you’d expect them to.  I probably could have ended that last sentence early with, “don’t really work.”

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