Event-Driven Architecture (EDA) is a software design paradigm centered on the production, detection, consumption of, and reaction to events, which are significant changes in state within a system. In this model, decoupled services communicate asynchronously; a service publishes an event to an event channel without knowing which services will consume it, and other services subscribe to events they are interested in and react accordingly when one occurs. This approach fosters loose coupling, making it a cornerstone for building scalable, resilient, and responsive distributed systems, as individual components can be updated, scaled, or fail independently without causing a cascading failure across the entire application.