What is the difference between a data warehouse and a database?

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What is the difference between a data warehouse and a database?

The main difference between a data warehouse and a database lies in their purpose and design.

A database is a structured collection of data that is designed to efficiently store, retrieve, and manage data for specific applications or systems. It is typically used for transactional processing, where data is constantly updated and modified. Databases are optimized for quick and frequent read and write operations, ensuring data integrity and consistency.

On the other hand, a data warehouse is a centralized repository that integrates data from various sources, such as databases, applications, and external systems. Its primary purpose is to support business intelligence and decision-making processes by providing a consolidated and historical view of data. Data warehouses are designed for analytical processing, allowing complex queries and aggregations to be performed on large volumes of data.

In summary, while databases are focused on transactional processing and day-to-day operations, data warehouses are designed for analytical processing and strategic decision-making.