server {
    listen 80;
    server_name localhost;
    root /usr/share/nginx/html;
    index index.html;

    # Gzip compression for static assets
    gzip on;
    gzip_vary on;
    gzip_min_length 1024;
    gzip_types text/plain text/css application/json application/javascript text/xml application/xml application/xml+rss text/javascript;

    # Cache static assets
    location ~* \.(js|css|png|jpg|jpeg|gif|ico|svg|woff|woff2|ttf|eot|otf)$ {
        expires 1y;
        add_header Cache-Control "public, immutable";
        try_files $uri =404;
    }

    # Proxy API requests to the backend container
    location /api/ {
        proxy_pass http://backend:8080/;
        proxy_http_version 1.1;
        proxy_set_header Host $host;
        proxy_set_header X-Real-IP $remote_addr;
        proxy_set_header X-Forwarded-For $proxy_add_x_forwarded_for;
        proxy_set_header X-Forwarded-Proto $scheme;
    }

    # Serve the SPA and fall back to index.html for client-side routes
    location / {
        try_files $uri $uri/ /index.html;
        add_header Cache-Control "no-cache";
    }
}