Serverless computing represents a significant shift in cloud-based software development, where cloud providers dynamically manage server allocation, allowing applications to rely on third-party services and transitory containers without the need for pre-purchasing compute capacity. This model, exemplified by platforms like AWS Lambda, Azure Functions, and Google Cloud Functions, enables enhanced scalability, cost efficiency, rapid deployment, and improved developer productivity by focusing on microservices and Function as a Service (FaaS). However, it also poses challenges such as cold start penalties, unsuitability for long-term tasks, and a steep learning curve due to the complexity of managing numerous small functions. While serverless architecture offers substantial advantages in terms of scalability and user experience, its potential disadvantages must be carefully managed to maximize its benefits effectively.