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Compensating transactions are intended to handle situations where it is required to undo either committed or uncommitted transactions that affect other transactions, without resorting to cascading aborts. This stands in sharp contrast to the standard approach to transaction recovery where cascading aborts are avoided by requiring transactions to read only comitted data, ad where conritted transactions are treated as permanent and irreversible. We argue that this standard approach to recovery is not suitable for a wide range of advanced database applications, in particular those applications that incorporate long-duration or nested transactions. We show how compensating transactions can be effectively used to handle these types of applications. We present a model that allows the definition of a variety of types of correct coupensation. These types of compensation range from traditional undo, at one extreme, to …