MSDTC is an acronym for Microsoft Distributed Transaction Coordinator.
MSDTC is an acronym for Microsoft Distributed Transaction Coordinator. As its name implies, MSDTC provides transaction coordination between multiple resources. e.g. databases, message queues, etc.
Frequent issues are around network configuration (e.g. firewall ports and RPC ports) as well as DTC failures around unwanted transaction promotion.
Resources
Distributed Transaction Coordinator(MSDTC) and Transaction FAQ