Microservices architecture structures applications as collections of independently deployable, loosely coupled services that communicate over well-defined APIs. Unlike monolithic architectures where all components exist in a single codebase, microservices enable teams to develop, deploy, and scale services independently, making them ideal for complex, distributed systems. The architecture brings operational complexity—distributed tracing, service discovery, data consistency—but when applied correctly, it delivers organizational agility, fault isolation, and the ability to evolve technology stacks per service. The key to success lies not in breaking everything into microservices, but in defining service boundaries that align with business capabilities and minimize inter-service chatter.