When developing cloud native applications using microservices, there might be time when you want to manage a transaction, where it is set of microservices working with each other to complete the process. For example, lets take a look at example below for placing an order in a e-commerce website.

The Saga design pattern is a way to manage data consistency across microservices in distributed transaction scenarios. A saga is a sequence of transactions that updates each service and publishes a message or event to trigger the next transaction step. If a step fails, the saga executes compensating transactions that counteract the preceding transactions.

https://learn.microsoft.com/en-us/azure/architecture/reference-architectures/saga/saga

Choreography based SAGA: Event-driven communication across various services. Each
service publishes events to the queue, which is listened to by the interested
services. The listener services will perform actions based on the data
received.

Orchestration based SAGA:

The central role in this type of implementation is played by an orchestrator.
The orchestrator service takes control of the overall communication among
various services.

Reference: https://www.amazon.in/Cloud-Native-Applications-Jakarta-Microservices-ebook/dp/B093D2QMF8