diff --git a/test/transactionengine.cpp b/test/transactionengine.cpp
new file mode 100644
index 000000000..0a6d20991
--- /dev/null
+++ b/test/transactionengine.cpp
@@ -0,0 +1,53 @@
+#include <thread>
+#include <vector>
+#include <unistd.h>
+
+#include "catch.hpp"
+
+#include "transaction/transactionengine.hpp"
+#include "sync/spinlock.hpp"
+
+TEST_CASE("(try to) test correctness of the transaction life cycle")
+{
+    constexpr int THREADS = 16;
+    constexpr int TRANSACTIONS = 10;
+
+    TransactionEngine<uint64_t, SpinLock> engine(0);
+    std::vector<uint64_t> sums;
+
+    sums.resize(THREADS);
+
+    auto f = [&engine, &sums](int idx, int n)
+    {
+        uint64_t sum = 0;
+    
+        for(int i = 0; i < n; ++i)
+        {
+            auto t = engine.begin();
+            sum += t.id;
+            engine.commit(t);
+        }
+
+        sums[idx] = sum;
+    };
+    
+    std::vector<std::thread> threads;
+
+    for(int i = 0; i < THREADS; ++i)
+        threads.push_back(std::thread(f, i, TRANSACTIONS));
+
+    for(auto& thread : threads)
+        thread.join();
+
+    uint64_t sum_computed = 0;
+
+    for(int i = 0; i < THREADS; ++i)
+        sum_computed += sums[i];
+
+    uint64_t sum_actual = 0;
+
+    for(uint64_t i = 0; i <= THREADS * TRANSACTIONS; ++i)
+        sum_actual += i;
+
+    REQUIRE(sum_computed == sum_actual);
+}
diff --git a/transaction/transaction.hpp b/transaction/transaction.hpp
new file mode 100644
index 000000000..d13c9c9b2
--- /dev/null
+++ b/transaction/transaction.hpp
@@ -0,0 +1,26 @@
+#ifndef MEMGRAPH_TRANSACTION_TRANSACTION_HPP
+#define MEMGRAPH_TRANSACTION_TRANSACTION_HPP
+
+#include <cstdlib>
+#include <vector>
+
+template <class id_t>
+struct Transaction
+{
+    Transaction(id_t id, std::vector<id_t> active)
+        : id(id), active(std::move(active)) {}
+
+    // index of this transaction
+    id_t id;
+
+    // the ids of the currently active transactions used by the mvcc
+    // implementation for snapshot isolation
+    std::vector<id_t> active;
+
+    bool operator<(const Transaction<id_t>& rhs)
+    {
+        return id < rhs.id; 
+    }
+};
+
+#endif
diff --git a/transaction/transaction_log.hpp b/transaction/transaction_log.hpp
new file mode 100644
index 000000000..d599cb48a
--- /dev/null
+++ b/transaction/transaction_log.hpp
@@ -0,0 +1,5 @@
+#ifndef MEMGRAPH_TRANSACTION_TRANSACTION_LOG_HPP
+#define MEMGRAPH_TRANSACTION_TRANSACTION_LOG_HPP
+
+
+#endif
diff --git a/transaction/transactionengine.hpp b/transaction/transactionengine.hpp
new file mode 100644
index 000000000..8389ccd4a
--- /dev/null
+++ b/transaction/transactionengine.hpp
@@ -0,0 +1,88 @@
+#ifndef MEMGRAPH_TRANSACTION_TRANSACTIONENGINE_HPP
+#define MEMGRAPH_TRANSACTION_TRANSACTIONENGINE_HPP
+
+#include <cstdlib>
+#include <atomic>
+#include <mutex>
+#include <vector>
+#include <set>
+#include <list>
+
+#include "transaction.hpp"
+
+template <class id_t, class lock_t>
+class TransactionEngine
+{
+    using trans_t = Transaction<id_t>;
+
+public:
+    TransactionEngine(id_t n) : counter(n) {}
+    
+    Transaction<id_t> begin()
+    {
+        auto guard = acquire();
+
+        auto id = ++counter;
+        auto t = Transaction<id_t>(id, active);
+
+        active.push_back(id);
+
+        return t;
+    }
+
+    void commit(const Transaction<id_t>& t)
+    {
+        auto guard = acquire();
+
+        finalize_transaction(t);
+    }
+
+    void rollback(const Transaction<id_t>& t)
+    {
+        auto guard = acquire();
+        // what to do here?
+        
+        finalize_transaction(t);
+    }
+
+    // id of the last finished transaction
+    id_t epochs_passed()
+    {
+        auto guard = acquire();
+        return active.front() - 1;
+    }
+
+    // total number of transactions started from the beginning of time
+    id_t count()
+    {
+        auto guard = acquire();
+        return counter;
+    }
+
+    // the number of currently active transactions
+    size_t size()
+    {
+        auto guard = acquire();
+        return active.size();
+    }
+
+private:
+    void finalize_transaction(const Transaction<id_t>& t)
+    {
+        // remove transaction from the active transactions list
+        auto last = std::remove(active.begin(), active.end(), t.id);
+        active.erase(last, active.end());
+    }
+
+    std::unique_lock<lock_t> acquire()
+    {
+        return std::unique_lock<lock_t>(lock);
+    }
+
+    id_t counter;
+    lock_t lock;
+
+    std::vector<id_t> active;
+};
+
+#endif