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

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

    # Serve static files
    location / {
        try_files $uri $uri/ /index.html;
    }

    # Proxy API requests to backend
    location /api/ {
        proxy_pass http://backend:8080;
        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;
        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;
    }

    # Security headers
    add_header X-Frame-Options "SAMEORIGIN" always;
    add_header X-Content-Type-Options "nosniff" always;
    add_header X-XSS-Protection "1; mode=block" always;
}