Event-Driven Architecture (EDA) is a software design approach where the flow of the program is determined by events. An event can be anything significant, like a user action or a change in data. In EDA, components communicate by producing and responding to these events, allowing for a more flexible and scalable system. This means that different parts of the application can work independently, making it easier to manage and update. In EDA, tools like message brokers help transmit events between components. This architecture is commonly used in modern applications, especially in cloud environments, where services need to react quickly to changes, enhancing user experience and system performance.