The document discusses the key functions of distributed database management systems including keeping track of data distribution, processing distributed queries, managing replicated data, distributed recovery from failures, security across sites, distributed directory management, and distributed transaction management. It also classifies DDBMS as either homogeneous where all sites use the same DBMS or heterogeneous where sites may use different DBMS products requiring translations. The document describes how transaction transparency ensures integrity and consistency when transactions update data across multiple connected computers in a distributed database.