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instance recovery means getting the database to a normal functioning state.

the recovery is needed when the database server crashes. the crash may be due to sudden power off.or somebody given the shutdown abort command

in this cases what ever the changes that should happen with the database are not happened in a regular manner. so again when the database starts a process called instance recovery happens

such as rolling forward the committed transactions

and rolling backward the uncommitted transactons

the set of transactions are already recorded in the files are called online redo log files

this is called instance recovery in oracle 10g

hope this helped

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