Explain the Atomic Design methodology and how it structures components in a Design System.

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Atomic Design is a methodology created by Brad Frost that structures user interfaces into five distinct levels, from the smallest unit to the complete page.

The five levels of Atomic Design start with Atoms at the first level. These are the indivisible base elements of the interface. For example, a button, a label, an input, an icon, or an avatar. They cannot be broken down further without losing functionality. Each atom is styled via design tokens.

Second level is Molecules. These are groups of atoms that work together as a unit. For example, a form field combining a label, an input, and a help message. A molecule has a single responsibility and is reusable.

Third level is Organisms. These are groups of molecules and or atoms that form a distinct section of the interface. For example, a header with logo, navigation, and search bar. Or a complete form with multiple fields and submit button.

Fourth level is Templates. These are arrangements of organisms that define the structure of a page without real content. It is the skeleton of the page with placeholders. Templates validate layout before having final content.

Fifth level is Pages. These are templates filled with real content. This is what the end user sees. Pages allow testing the design with varied data like long texts or different sized images.

Advantages of this approach include favoring reusability by building from simple to complex. It facilitates maintenance because a change to an atom propagates automatically. It improves communication because the team uses common vocabulary.

Limitations to consider include the strict hierarchy sometimes being constraining. Some components do not fit clearly into a category. The important thing is adapting the methodology to your needs rather than following it dogmatically.