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This explanation walks through an event-driven microservices architecture where Kafka acts as the central event backbone. Incoming client traffic is load-balanced across API services, which publish business events such as ORDER_PLACED to Kafka instead of making synchronous downstream calls. Independent microservices consume these events asynchronously, enabling horizontal scaling, fault isolation, and reliable processing. Transactional data is stored in the database, while Redis caching provides fast access to frequently requested data. This architecture is ideal for high-traffic e-commerce platforms requiring scalability, resilience, and high availability.