Hierarchical data model is a data model in which the data is organized into a tree-like structure. The structure allows repeating information using parent/child relationships: each parent can have many children but each child only has one parent. All attributes of a specific record are listed under an entity type.
In a database, an entity type is the equivalent of a table; each individual record is represented as a row and an attribute as a column. Entity types are related to each other using 1: N mapping, also known as one-to-many relationships.
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Relational database matches data by using common characteristics found within the data set. The resulting groups of data are organized and are much easier for people to understand.
For example, a data set containing all the real-estate transactions in a town can be grouped by the year the transaction occurred; or it can be grouped by the sale price of the transaction; or it can be grouped by the buyer's last name; and so on.
Such a grouping uses the relational model (a technical term for this is schema). Hence, such a database is called a "relational database."
The software used to do this grouping is called a relational database management system. The term "relational database" often refers to this type of software.
Relational databases are currently the predominant choice in storing financial records, manufacturing and logistical information, personnel data and much more.
