Connection caching, generally implemented in the middle tier, allows a single database connection to be shared among different applications. The middle tier maintains a pool of pre-allocated physical database connections that applications can use to interact with database servers. When applications request a database connection, the middle tier first looks in the pool to see if there are any available connections that would satisfy the request; if so, the middle tier simply returns one of those connections.
My coworker Frances Zhao wrote an article how DataSources are changing in OC4J 10.1.3 and how connection caching is performed declaratively and programmatically in OC4J.
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