How does Rails handle large-scale service decomposition and domain boundary definition in microservices?

Rails supports service decomposition by defining bounded contexts using domain-driven design principles.

Service decomposition requires identifying bounded contexts where each service owns a specific business domain. Rails applications often start as monoliths and evolve into microservices by extracting domains like billing, orders, or notifications. Each service maintains its own database and API. Communication happens through APIs or events. The key challenge is avoiding shared database coupling and ensuring clear ownership boundaries.