UUID Version 1 is a type of universally unique identifier that is generated based on the current time and the MAC address of the computer creating it. This means that each UUID is unique not only because of the time it was created but also due to the specific hardware used, making it highly unlikely for two UUIDs to be the same. The format of a UUID consists of 32 hexadecimal characters, typically displayed in five groups separated by hyphens. This structure allows for a large number of unique identifiers, ensuring that they can be used in various applications, such as databases and distributed systems, without conflict.