SQL Server keeps track of all database modifications and every database transaction. This is done in a file called the transaction log or TLOG. This transaction log is particular to a SQL Server database and there is, at least, one transaction log per SQL Server database.
As explained on MSDN, the transaction log is a critical component of the database and, if there is a system failure, the transaction log might be required to bring your database back to a consistent state. The transaction log should never be deleted or moved unless you fully understand the ramifications of doing this. Read more »