System Design Fundamentals: The Building Blocks of Scalable Systems

System design interviews often seem intimidating because of their open-ended nature. But the truth is, most questions can be broken down using a small set of foundational principles.

In this guide, we’ll walk through the must-know fundamentals every software engineer should understand before tackling any system design problem.


🧱 1. Scalability

Scalability is the ability of a system to handle increasing load gracefully.

🔸 Vertical Scaling

  • Add more resources (CPU, RAM) to a single server.
  • Simple to implement, but has a physical limit.

🔸 Horizontal Scaling

  • Add more servers to distribute the load.
  • Enables web-scale systems, but adds complexity (e.g., distributed state, coordination).

In interviews, discuss how your architecture can horizontally scale with traffic.


📈 2. Availability

Availability is the system’s ability to respond to requests even under failure conditions.

🔸 High Availability

  • Redundant servers across multiple zones.
  • Load balancers and failover mechanisms.
  • Health checks and automated recovery.

Be ready to describe how to avoid single points of failure (SPOF) in your design.


🔁 3. Consistency

Consistency refers to ensuring all users see the same data at the same time.

🔸 Strong Consistency

  • Every read returns the latest write.
  • Common in SQL databases.

🔸 Eventual Consistency

  • Different nodes may return different values temporarily.
  • Common in NoSQL systems like DynamoDB, Cassandra.

Know when to favor one over the other, depending on the use case (e.g., messaging app vs. banking system).


⚖️ 4. CAP Theorem

The CAP theorem says a distributed system can only guarantee two of the following three:

  • Consistency
  • Availability
  • Partition Tolerance

Since network partitions are inevitable, every system design needs to trade off between Consistency and Availability.

Interview tip: Always mention how your design handles the CAP trade-offs.


🌐 5. Load Balancing

Load balancers distribute traffic across backend servers to:

  • Prevent overload
  • Enable redundancy
  • Improve response time

Types of Load Balancers

  • Layer 4: Based on IP/TCP (e.g., HAProxy)
  • Layer 7: Based on HTTP/URL routing (e.g., NGINX)

In your design, show where load balancers help scale or isolate services.


⚡ 6. Caching

Caching reduces response time and backend load.

Caching Layers

  • Browser / CDN Cache (static assets)
  • Application-level Cache (e.g., Redis, Memcached)
  • Database Query Cache

Cache Strategies

  • Write-through, Write-around, Write-back
  • Eviction policies: LRU, LFU, TTL

In interviews, caching is a great way to optimize latency or reduce DB bottlenecks.


📦 7. Stateless vs. Stateful Services

  • Stateless: Doesn’t store any session data on the server. Easier to scale.
  • Stateful: Requires session stickiness or external state store (e.g., Redis for sessions).

Always favor stateless services unless business logic requires shared state (e.g., multiplayer games, collaborative editors).


🛡️ 8. Rate Limiting and Throttling

To prevent abuse and protect system stability:

  • Use algorithms like Token Bucket, Leaky Bucket
  • Implement per-user or per-IP limits
  • Enforce request quotas in APIs

This often comes up in designing APIs or payment systems.


🌐 9. API Design

RESTful API Design Principles

  • Use nouns, not verbs: GET /users, POST /orders
  • Idempotency: Ensure repeated calls don't have unintended side effects
  • Versioning: v1, v2 support backward compatibility
  • Use pagination and filtering for scalability

You’ll often be asked to “design APIs” as part of system design discussions.


🧠 How These Show Up in Interviews

ConceptExample Questions
Caching"Design a news feed. How do you reduce DB load?"
Load Balancing"Design a chat app. How do you handle high QPS?"
CAP Theorem"Design Dropbox. What trade-offs do you make in storage?"
Statelessness"Design a web server. How do you scale login sessions?"
Rate Limiting"Design a payment gateway. How do you prevent abuse?"

✅ Summary

ConceptWhy It Matters in Design
ScalabilityHandle increasing users/traffic
AvailabilityEnsure uptime and fault-tolerance
ConsistencyGuarantee correct data access