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Nginx is more than a high-performance web server. It can improve your architecture by acting as a load balancer, reverse proxy, forward proxy, or caching layer—boosting scalability, reducing latency, and enhancing security. Key benefits include:
  • Distributing requests for high availability
  • Offloading SSL/TLS and request routing
  • Caching responses to cut backend load
  • Controlling outbound traffic and anonymizing clients
Explore each use case below, complete with configuration examples, diagrams, and best practices.

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Load Balancing

By distributing incoming requests across multiple servers, Nginx prevents any single backend from becoming a bottleneck. You declare an upstream block listing your servers, then proxy traffic to it. 
upstream backend {
    server backend1.example.com;
    server backend2.example.com max_fails=3 fail_timeout=30s;
}

server {
    listen 80;
    location / {
        proxy_pass http://backend;
    }
}
Nginx supports multiple algorithms including round_robin (default), least_conn, and ip_hash. Choose one based on your workload characteristics.
The image illustrates a load balancing setup using Nginx, showing the flow from users through a network cloud to a load balancer, which distributes traffic to multiple web servers. It includes indicators for queries/responses and server health checks.

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Reverse Proxy

A reverse proxy accepts client requests, applies routing or SSL offloading, then forwards them to one or more backend servers. This hides your infrastructure behind a single public endpoint. 
server {
    listen 443 ssl;
    server_name example.com;

    ssl_certificate     /etc/nginx/ssl/example.crt;
    ssl_certificate_key /etc/nginx/ssl/example.key;

    location / {
        proxy_pass       http://internal_app;
        proxy_set_header Host $host;
        proxy_set_header X-Real-IP $remote_addr;
    }
}
The image illustrates the concept of a reverse proxy using NGINX, showing how it routes requests from users through a network cloud to either an NGINX or Apache web server.

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Load Balancer vs. Reverse Proxy

FeatureLoad BalancerReverse Proxy
Primary RoleDistribute traffic across serversIntercept and forward requests
Backend ServersRequires two or moreCan work with a single server
Common Use CasesScaling, failover, health checksSSL/TLS termination, path-based routing

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Forward Proxy

A forward proxy sits between clients and the internet, filtering or anonymizing outbound requests. Configure Nginx to restrict sites or mask client IPs for privacy. 
server {
    listen 3128;

    resolver 8.8.8.8;
    proxy_pass_request_headers on;

    location / {
        proxy_pass $scheme://$http_host$request_uri;
        proxy_hide_header Proxy-Authorization;
    }
}
Opening a forward proxy to the public can lead to abuse. Always secure it with allow/deny or authentication mechanisms.
The image illustrates the concept of a forward proxy, showing clients accessing websites through an NGINX proxy and a network cloud.

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Caching

Caching with Nginx reduces response times and eases load on backend services. Define a cache zone, set key parameters, and control how responses are stored. 
proxy_cache_path /var/cache/nginx levels=1:2 keys_zone=my_cache:10m 
                 inactive=60m max_size=1g;

server {
    listen 80;
    location / {
        proxy_cache my_cache;
        proxy_pass http://backend;
        proxy_cache_valid 200 302 10m;
        proxy_cache_valid 404 1m;
    }
}
Monitor cache usage and tune inactive and max_size to avoid running out of disk space. Use proxy_cache_bypass for selective caching.
The image illustrates a caching system with a network cloud, a reverse proxy using NGINX, and multiple web servers, including Apache and a generic server. It shows the flow of data from users through the network and proxy to the servers.

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