Serverless applications allow developers to focus on writing code without worrying about managing infrastructure. With serverless, there is zero administration, no provisioning is needed, and applications can scale seamlessly. Some key benefits of the serverless approach are that it allows for rapid innovation and focusing on business value. Serverless uses building blocks like AWS API Gateway and AWS Lambda. API Gateway handles authorization and scaling for APIs, while Lambda allows code to be run in a serverless environment and scales automatically based on usage.