Event-driven architecture in nginx means it waits for events like client requests using an event loop. When a client connects, nginx accepts the connection and assigns it to a worker process. The worker processes the HTTP request, generates a response, sends it back, and then returns to idle to wait for more events. This allows nginx to handle many requests efficiently without blocking. The configuration sets how many worker processes run and how many connections each can handle. The execution table shows each step from connection to response. Variables track worker state and response status. This model helps nginx serve many clients quickly and reliably.