What is Event-driven architecture?
Event-driven architecture is a software design approach where components communicate by publishing and reacting to events, such as "order placed" or "payment received", rather than calling each other directly. Producers do not need to know which services consume an event, which keeps systems loosely connected.
Why it matters for your business
It lets businesses add new reactions to existing activity, like notifications or analytics, without changing the original system, and it handles real-time workloads and traffic spikes well.
When a customer places an order, an "order placed" event triggers separate services to reserve inventory, send a confirmation email and update the sales dashboard.