It is used to implement the 'optimistic concurrency' design pattern...
Optimistic concurrency derives its name from the optimistic assumption that collisions between transactions will rarely occur; a collision is said to have occurred when another transaction updates or deletes a row of data between the time it is read by the current transaction and the time it is updated or deleted. It is the opposite of pessimistic concurrency, or locking, in which the application developer believes that such collisions are commonplace.
In optimistic concurrency, a row is left unlocked until the time comes to update or delete it. At that point, the row is reread and checked to see if it has been changed since it was last read. If the row has changed, the update or delete fails and must be tried again.
To determine whether a row has been changed, its new version is checked against a cached version of the row. This checking can be based on the row version, such as the timestamp column in SQL Server...
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See http://msdn.microsoft.com/library/defau ... rrency.asp