Understanding Token Bucket: The Algorithm Behind API Rate Limiting

The token bucket algorithm is the foundational rate-limiting technique used by services like Stripe, GitHub, and Cloudflare to prevent API server overload and ensure fair resource distribution. Unlike simple fixed-window approaches, it elegantly handles traffic bursts while maintaining average rate limits, making it the industry standard for API protection. For both API developers and consumers, understanding this algorithm is critical to optimizing request handling and ensuring reliable system performance.