Design Microservices Architecture with Patterns and Principles - Compensating Transaction Pattern

The video tutorial explains the compensating transaction pattern, a rollback process used in microservice architectures to reverse the steps of a previously executed transaction. It is crucial in distributed systems where multiple services are involved in a transaction, and any failure requires undoing the entire transaction. The tutorial discusses the implementation challenges, such as eventual consistency and failure handling, and provides a real-world example in an e-commerce context. It also highlights the complexities and potential side effects of using this pattern.

Describe a real-world example of the compensating transaction pattern in an e-commerce application.

What challenges might arise when implementing the compensating transaction pattern?