What is Saga pattern?

The Saga pattern is a distributed transaction management approach that coordinates a sequence of local transactions across multiple microservices. It ensures data consistency in distributed systems by breaking down a single business transaction into a series of smaller, independent transactions (saga). If one transaction fails, the saga compensates by executing compensating transactions to undo the effects of the preceding transactions, maintaining data consistency across the system. Sagas are commonly used in scenarios like order processing, where a single order involves multiple services such as inventory, payment, and shipping.