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

    # Gzip compression for text assets
    gzip on;
    gzip_vary on;
    gzip_min_length 1024;
    gzip_proxied any;
    gzip_comp_level 6;
    gzip_types text/plain text/css text/xml application/json application/javascript application/xml+rss application/atom+xml image/svg+xml;

    # Cache static assets aggressively
    location ~* \.(jpg|jpeg|png|gif|ico|css|js|pdf|woff|woff2|ttf|eot)$ {
        expires 30d;
        add_header Cache-Control "public, immutable";
        access_log off;
    }

    location / {
        try_files $uri $uri/ /index.html;
    }

    location /api/ {
        proxy_pass http://backend:3001/api/;
        proxy_http_version 1.1;
        proxy_set_header Upgrade $http_upgrade;
        proxy_set_header Connection 'upgrade';
        proxy_set_header Host $host;
        proxy_cache_bypass $http_upgrade;
    }
}