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Databricks·Software Engineer·Onsite - System Design / Architecture·Senior

SeniorPrefer not to say
Jun 2026

Summary

System design round at Databricks focused entirely on building a game shop service. The depth they wanted on failure scenarios and idempotency was more than I expected for what seemed like a scoped problem.

Questions Asked (5)

Q1

Design a game shop service that supports adding credit to a user account, purchasing items, and processing refunds. Walk through your API design, database schema, and the core flows.

System DesignAPI & IntegrationsData Modeling
Author's notes

I started with the happy path which was probably the wrong move.

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AI HintsAI Generated

Suggested Approach

Start by clarifying requirements and scale, then outline the high-level components (API, database, payment integration). Focus on the core flows: adding credit, purchasing, and refunding, ensuring idempotency and consistency. Conclude with trade-offs and potential optimizations.

Pro tip: Emphasize idempotency and transactional integrity in payment operations, as these are critical for financial systems and demonstrate production maturity. Also, discuss how you would handle failures and retries gracefully.

1. Clarify Requirements and Scale

Ask questions to understand expected load, consistency requirements, and integration with external payment providers. This sets the stage for design decisions.

2. Design the API

Define RESTful endpoints for adding credit, purchasing, and refunding, including request/response schemas and error handling. Consider idempotency keys for safe retries.

3. Design the Database Schema

Propose tables for users, accounts, transactions, and items, with appropriate indexes and constraints. Discuss how to maintain consistency and audit trails.

4. Walk Through Core Flows

Explain step-by-step how each operation works, including validation, database updates, and interaction with external payment systems. Highlight transaction boundaries and idempotency.

5. Discuss Trade-offs and Optimizations

Address potential bottlenecks, consistency vs. availability, and how to scale. Mention monitoring, logging, and security considerations.

Key Points to Mention

  • Idempotency keys for payment operations to prevent duplicate charges
  • Database transactions and locking strategies to ensure consistency
  • Integration with external payment gateways and handling callbacks/webhooks
  • Audit logging and reconciliation for financial transactions
  • Handling refunds and partial refunds, including edge cases
  • Scalability considerations: sharding, caching, and read replicas

AI-generated suggestions, not part of the candidate's original notes. May be inaccurate — verify before relying on them.

Q2

For the purchase API, should it accept item quantity or total value as input? What are the tradeoffs?

API & IntegrationsTechnical Trade-offs
Author's notes

Honestly a question I hadn't thought about before.

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AI HintsAI Generated

Suggested Approach

Start by clarifying the business context and requirements, then compare quantity vs. total value inputs across dimensions like pricing flexibility, validation, and client complexity. Conclude with a recommendation that balances simplicity, correctness, and future extensibility, possibly suggesting a hybrid approach.

Pro tip: Mention that accepting quantity is generally safer because it centralizes pricing logic server-side, reducing the risk of price mismatches and fraud, but be open to total value for use cases like donations or when pricing is dynamic and client-controlled.

1. Clarify Requirements

Ask about the use case: Is this for a fixed-price catalog, dynamic pricing, or donations? Understand who controls pricing and how often it changes.

2. Analyze Quantity Input

Discuss pros: server controls pricing, easier validation, consistent totals. Cons: less flexible for custom amounts, requires server to know current price.

3. Analyze Total Value Input

Discuss pros: flexible for arbitrary amounts, simpler for clients that compute totals. Cons: risk of price mismatch, harder to validate, potential for fraud or errors.

4. Evaluate Trade-offs

Compare on dimensions: security, consistency, client complexity, API evolution, and error handling. Consider idempotency and rounding issues.

5. Recommend and Justify

Propose a solution, e.g., accept quantity by default, with an optional total value for specific cases, or use a separate endpoint. Explain how it aligns with business needs and engineering best practices.

Key Points to Mention

  • Server-side pricing control prevents tampering and ensures consistency.
  • Client-side total calculation can lead to discrepancies due to stale prices or rounding.
  • Quantity input simplifies idempotency and retry logic.
  • Total value input may be necessary for donations or variable pricing models.
  • Consider API versioning and backward compatibility if supporting both.
  • Validation and error handling differ: quantity requires stock checks, total value requires amount limits.

AI-generated suggestions, not part of the candidate's original notes. May be inaccurate — verify before relying on them.

Q3

How do you handle duplicate purchase requests caused by client retries? Walk through your idempotency key design.

System DesignTechnical Trade-offs
Author's notes

This is where I felt most comfortable.

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AI HintsAI Generated

Suggested Approach

Start by clarifying the scenario: client retries on timeouts or network failures can cause duplicate purchase requests. Then walk through your idempotency key design: how keys are generated, stored, and validated, and how you handle concurrent requests and edge cases. Emphasize trade-offs like storage cost, TTL, and failure modes.

Pro tip: Mention that idempotency keys should be scoped to a specific operation and user, and that you must handle the case where the first request is still in-flight when the retry arrives—using a lock or 'pending' state to avoid race conditions.

1. Clarify the problem and requirements

Restate the issue: client retries can cause duplicate charges or orders. Ask about scale, latency requirements, and whether the client can generate keys.

2. Design the idempotency key

Explain how the key is generated (e.g., client-generated UUID, or hash of request payload + user ID) and its scope (per user, per operation).

3. Store and validate keys

Describe the storage layer (e.g., Redis, database) with TTL, and how you check for existing keys before processing. Mention atomic operations to avoid race conditions.

4. Handle concurrent and in-flight requests

Discuss locking or 'pending' state to ensure only one request processes while others wait or return the same result.

5. Address edge cases and trade-offs

Cover key expiration, storage cost, failure scenarios (e.g., key stored but request fails), and how to clean up.

Key Points to Mention

  • Idempotency key generation: client-side vs. server-side, and ensuring uniqueness.
  • Storage: using a fast, persistent store like Redis or DynamoDB with TTL.
  • Atomic check-and-set to prevent race conditions.
  • Handling in-flight requests: locking or returning a 'processing' status.
  • Trade-offs: storage overhead, TTL duration, and impact on latency.
  • Failure modes: what if the key is stored but the operation fails? How to retry safely.

AI-generated suggestions, not part of the candidate's original notes. May be inaccurate — verify before relying on them.

Q4

How would you use database transactions to keep credit balance updates and inventory changes atomic during a purchase?

System DesignData Modeling
Author's notes

Pretty standard once you've seen it before.

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AI HintsAI Generated

Suggested Approach

Start by defining the atomicity requirement: both the credit balance update and inventory decrement must succeed or fail together. Then explain how to wrap both operations in a single database transaction with appropriate isolation level and error handling, and discuss how to handle concurrency and failures.

Pro tip: Mention that you would use SELECT ... FOR UPDATE to lock the rows before updating, and that you would consider using optimistic concurrency control with version numbers if contention is low, showing awareness of trade-offs.

1. Clarify requirements and scope

Confirm that the purchase involves updating a user's credit balance and decrementing inventory, and that both must be atomic. Ask about expected concurrency and consistency needs.

2. Choose transaction boundaries and isolation

Decide to wrap both updates in a single transaction. Select an isolation level (e.g., Read Committed or Repeatable Read) that prevents lost updates and dirty reads, and explain why.

3. Implement locking and updates

Use SELECT ... FOR UPDATE to lock the credit and inventory rows, then perform the updates. Alternatively, use optimistic concurrency with version checks if contention is low.

4. Handle errors and rollback

Ensure that any failure (e.g., insufficient credit or inventory) triggers a rollback, leaving both balances unchanged. Use try-catch or transaction management to guarantee atomicity.

5. Discuss scalability and alternatives

Mention that for high concurrency, you might use a distributed transaction or saga pattern, but for a single database, transactions suffice. Also note the importance of idempotency and retry logic.

Key Points to Mention

  • ACID properties, especially atomicity and consistency
  • Transaction isolation levels and their impact on concurrency
  • Row-level locking (SELECT ... FOR UPDATE) vs. optimistic concurrency control
  • Rollback and error handling to ensure all-or-nothing behavior
  • Deadlock avoidance and retry strategies
  • Performance considerations and alternatives like sagas for distributed systems

AI-generated suggestions, not part of the candidate's original notes. May be inaccurate — verify before relying on them.

Q5

Walk through the refund flow. What state transitions are involved and what can go wrong?

System DesignAPI & Integrations
Author's notes

I mapped out a few states: refund requested, refund processing, refunded, failed.

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AI HintsAI Generated

Suggested Approach

Start by defining the refund flow's scope and actors, then walk through the state machine from initiation to completion, highlighting failure modes and idempotency. Emphasize how you'd design for consistency, observability, and reconciliation in a distributed system.

Pro tip: Show maturity by discussing idempotency keys and compensating transactions—interviewers at Databricks care about correctness under failures, not just happy paths.

1. Clarify scope and actors

Ask clarifying questions about the refund flow: who initiates it (customer, support, system), what payment methods are involved, and whether it's full or partial. Define the boundaries of the system you'll describe.

2. Map the state machine

Enumerate the states (e.g., INITIATED, PENDING, PROCESSING, SUCCEEDED, FAILED, CANCELLED, REFUNDED) and the transitions between them. Explain what triggers each transition and who owns it.

3. Identify failure modes and edge cases

Discuss what can go wrong at each transition: network timeouts, duplicate requests, partial failures, inconsistent state between services, and external provider errors. Mention how to detect and handle them.

4. Design for reliability

Propose mechanisms like idempotency keys, retries with backoff, compensating transactions (sagas), and reconciliation jobs to ensure eventual consistency and prevent double refunds.

5. Summarize and tie to Databricks

Wrap up by highlighting observability (logging, metrics, tracing) and how this design scales. Relate it to Databricks' need for reliable data pipelines and transactional integrity.

Key Points to Mention

  • Idempotency keys to prevent duplicate refunds on retries
  • State machine with clear transitions and terminal states
  • Compensating transactions or saga pattern for distributed consistency
  • Handling external payment provider failures and timeouts
  • Reconciliation and audit trails for financial correctness
  • Observability: logging, metrics, and alerting on state transitions

AI-generated suggestions, not part of the candidate's original notes. May be inaccurate — verify before relying on them.