A UUID, or Universally Unique Identifier, is a 128-bit number used to identify information uniquely. Its main advantage is that it can be generated independently across different systems without the risk of duplication. In practice, UUIDs are represented as a series of hexadecimal digits in a specific format, often displayed as five groups separated by hyphens. For example: `123e4567-e89b-12d3-a456-426614174000`. This identifier is particularly useful in scenarios where a system needs to create unique tokens or track transactions without relying on a central authority. In decentralized applications, UUIDs help maintain uniqueness across various entities, such as users, transactions, or assets.The use of UUIDs enhances security and interoperability, making it easier to merge data from multiple sources while ensuring that each entity remains distinct. This is crucial in environments where data integrity and uniqueness are vital for the system’s functionality.