You're working on a banking system where financial transactions need to be securely stored and retrieved. How would you design the database schema and implement transaction management in this scenario?

Option 1 is correct. For a banking system, ACID-compliant transactions ensure data integrity, consistency, and security. Separate tables for accounts, transactions, and users allow for efficient data management and auditing. Distributed transactions and blockchain are not typically used in traditional banking systems due to complexity and regulatory concerns. Storing transactions in flat files lacks transactional integrity and is not suitable for secure financial data. While encryption is essential, it's a security measure rather than a primary transaction management method. Normalization is important but not the primary focus when dealing with financial transactions.