A database transaction must possess four key properties known as ACID: Atomicity, Consistency, Isolation, and Durability. Atomicity means that either all tasks of a transaction are performed or none are. Consistency ensures transactions produce valid, rule-abiding data. Isolation means other operations cannot access intermediate transaction data. Durability guarantees completed transactions are recorded to durable storage. These ACID properties are crucial for maintaining database integrity and performance during concurrent transactions.