The most common form is version 4, which is essentially a big random number. Version 7, standardised in 2024, prepends a timestamp so IDs sort in creation order — much friendlier for database indexes.
UUIDs are used as primary keys, request IDs, session tokens, and anywhere two systems need to agree on an ID without a central issuer. Collisions are theoretically possible but astronomically unlikely.
They're 36 characters, so they take more space than an integer key. In hot paths, UUID v7 or a compact encoding (Base32, Base58) recovers most of the performance.