Design a Caching Service

Last updated: March 31, 2026

Quick Overview

Design a event-driven caching system that handles millions of requests. Discuss trade-offs in consistency, availability, and performance.

Neon
System Design
Software Engineer
Neon
March 31, 2026
Software Engineer
System Design Round
System Design
Medium

9

14

1,971 solved


Design a event-driven caching system that handles millions of requests. Discuss trade-offs in consistency, availability, and performance.

System design interviews at Neon typically last 45-60 minutes. You are expected to drive the conversation, starting from requirements gathering through to a detailed architecture. The interviewer will evaluate your ability to handle ambiguity and make practical engineering decisions.

What the Interviewer Expects
  • Systematically gather requirements and estimate capacity (QPS, storage, bandwidth)
  • Design a scalable architecture with clear component responsibilities
  • Make well-reasoned database and caching decisions with trade-off analysis
  • Address consistency vs availability trade-offs specific to the use case
  • Discuss partitioning strategy, replication, and data modeling
  • Cover failure handling, monitoring, and alerting strategies
Key Topics to Cover
Database selection and data modeling
Message queues and async processing
Caching strategies (local, distributed, CDN)
Monitoring, logging, and alerting
Partitioning and sharding strategies
How to Approach This
  1. Start by clarifying functional and non-functional requirements with the interviewer.
  2. Estimate the scale: QPS, storage, bandwidth. This drives your design decisions.
  3. Draw a high-level architecture first, then deep dive into 1-2 critical components.
  4. Discuss trade-offs explicitly (e.g., consistency vs availability, SQL vs NoSQL).
  5. Address failure scenarios, monitoring, and how the system handles 10x traffic spikes.
Possible Follow-up Questions
  • What would the deployment pipeline look like for this system?
  • How would you implement rate limiting to protect the system?
  • How would you migrate from a monolithic to a microservices architecture?
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Sample Answer
Requirements

Functional Requirements

  1. Event-Driven Caching: The service must cache data based on events, such as new data being added or existing data being updated.
  2. Cache Invalidation: The system...
Capacity Estimation

Assuming Neon has around 10 million active users and each user generates approximately 100 requests per day:

  • Total Requests Per Day: 10 million users * 100 requests/user = 1 billion requests/day...

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