Intro to FinTech

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Microservices architecture

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Intro to FinTech

Definition

Microservices architecture is a software development technique where an application is structured as a collection of small, independent services that communicate over a network. Each service focuses on a specific business capability and can be developed, deployed, and scaled independently, allowing for greater flexibility and faster delivery of new features. This architecture is closely linked with serverless computing, enhancing the scalability and resilience of systems by promoting loose coupling between components.

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5 Must Know Facts For Your Next Test

  1. Microservices architecture allows teams to develop services in different programming languages or technologies, promoting diversity and optimizing for specific tasks.
  2. With microservices, updates to one service can occur without affecting the entire application, reducing downtime and improving deployment speed.
  3. This architecture promotes better fault isolation; if one service fails, it doesn't necessarily bring down the whole system.
  4. Microservices can enhance system scalability, as individual services can be scaled independently based on demand.
  5. Microservices architecture facilitates continuous integration and continuous deployment (CI/CD) practices, enabling faster iteration and delivery of new features.

Review Questions

  • How does microservices architecture enhance the flexibility and scalability of software applications?
    • Microservices architecture enhances flexibility by allowing developers to build and deploy services independently, enabling quick adjustments without impacting the entire application. Each service can be scaled individually based on its own demand, leading to efficient resource use and improved performance. This separation also supports teams working in parallel, speeding up development cycles and making it easier to adopt new technologies as needed.
  • Discuss the relationship between microservices architecture and serverless computing in improving system resilience.
    • Microservices architecture aligns well with serverless computing as both promote decoupling of components. In a serverless environment, each microservice can run on demand without managing server infrastructure, which simplifies deployment and scaling. This relationship contributes to system resilience since services can fail independently; in a serverless setup, resources are dynamically allocated based on actual usage, ensuring that the application remains responsive even under varying loads.
  • Evaluate the potential challenges organizations might face when implementing microservices architecture in their FinTech applications.
    • Organizations may encounter several challenges when implementing microservices architecture in FinTech applications. These include increased complexity in managing numerous services and the need for robust communication strategies between them. Ensuring security across distributed services can be difficult, especially in highly regulated financial environments. Additionally, monitoring and maintaining performance across all microservices require sophisticated tools and strategies, which could strain existing operational processes and necessitate training or hiring specialized staff.
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