Serverless architecture entails a cloud computing model where developers build and run applications without managing the underlying servers. In this approach, cloud providers automatically handle server provisioning, scaling, and maintenance, allowing developers to focus on writing code. It leverages event-driven computing, where functions are executed in response to specific triggers, making it highly efficient and cost-effective. By eliminating the overhead of server management, serverless architectures enable rapid development and deployment, fostering innovation and agility in application development while optimizing operational costs.