Microservices is an architectural approach that breaks large applications into small, independent services that communicate over lightweight protocols. Each service is focused on a specific business capability and can be owned by a small team.
The core ideas are loosely coupled, fine-grained components that can be developed, tested, deployed and scaled independently.
Benefits include easier code maintenance, the ability to choose different technologies per service, improved isolation and more predictable scaling. However, microservices also introduce challenges: network communication, distributed debugging, data consistency and testing across services require new patterns and tooling, especially at scale.