The report discusses how to create software for reliable distributed systems by using nested transactions. Transactions are groups of actions that cannot be separated, ensuring consistent results even during failures. Nested transactions allow for better control of multiple actions happening at once and enable parts of a transaction to fail without affecting the whole transaction. The method described in the report uses locking for managing multiple actions, recovery from failures, distributed commitment, and detecting deadlocks in a distributed system. Although not yet implemented, the design has been simulated.