The timestamp data type in SQL is a fundamental data type used to store both date and time values. It's designed to capture precise moments in time, making it invaluable for recording events, tracking changes, and logging actions within a database. Unlike date-only types, timestamps hold both the date and the time, down to the second (or sometimes even fractions of a second). This precision is essential for applications requiring detailed temporal information. For example, in an e-commerce platform, timestamps can record when an order was placed, when it was shipped, and when it was delivered. In a financial system, timestamps are critical for tracking transactions and ensuring accurate records of when events occurred. Timestamps are often used in conjunction with other data types, such as integers or strings, to provide a complete record of an event or action. Understanding the nuances of timestamps is vital for maintaining accurate and reliable data in a database.