Microservices architecture benefits application development by promoting modularity and scalability. In this architecture, applications are built as a collection of small, independent services that focus on specific business functions. Each microservice can be developed, deployed, and scaled independently, allowing for faster innovation and easier updates. This decoupling improves fault isolation—if one service fails, it doesn’t necessarily bring down the entire application. Additionally, different teams can work on various services simultaneously using different technologies, enhancing overall productivity and enabling organizations to respond quickly to changing business needs.