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Ordnance Survey – Great Britain's national mapping agency

Section 6.1 Data formats describes different types of data file. Files are the most commonly used packets of information in the world of the desktop computer. But when the volume of data becomes very large, or you need to allow many people to access the data at the same time, it becomes preferable to store the information in a database.
A database is a tool capable of storing large amounts of complex information in a structured way. Information in a database is organised into individual records that can be referenced, sorted, indexed, linked and queried. Most computer systems you interact with on a daily basis have some kind of database behind the scenes. These contain many different types of information, for example, an ATM showing your bank account details; on-screen flight information at an airport; products and prices at the supermarket checkout and so on. Databases are, in principle, more robust, secure and scalable than storing information in flat files.
Database technology is a very large subject and can only be covered in very simplistic terms in these pages. In large industrial software systems there will usually be multiple databases operating together in a database management system (DBMS). There are two distinct major database types: relational (RDBMS) and object-oriented (OODBMS). This section summarises the difference between these database types and explains how database technology plays a big part in GIS.