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Design Webhook

Design a webhook service that processes incoming requests and ensures efficient, secure handling of real-time events, such as payment notifications from services like Stripe or Shopify.

If you prefer the video format, here's a walkthrough of the problem:

Functional requirement:

Scale requirement:

  • Event Volume: The system should handle 1 million events per day.
  • Traffic Spikes: During peak hours, incoming requests may increase by 5 times.
  • Latency Requirement: End-to-end latency (from event arrival to processing completion) should be under 200 milliseconds.
  • Data Retention: The system should store all events for 30 days. Assume each event is 5KB.

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1. Resource Estimation