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That in itself wouldn't be that bad. At least you have a recovery process. It should also be possible to checkpoint the database to a backup periodically and then you only have to replay since the checkpoint.

I don't see a problem here. Why would I lose application database?

Yeah, I don't see the problem either. You got to be very sloppy to lose the entire database especially without backup checkpoints.

Yes. @smooth has right. This is what I had on mine mind. You can always restore the backup.

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