UUID Version 4 is a type of universally unique identifier that is generated randomly. It consists of 128 bits, typically represented as 32 hexadecimal characters, divided into five groups. The format includes a version number, which indicates that it is a version 4 UUID, and a variant that specifies the layout of the UUID. The randomness of UUID Version 4 makes it highly unlikely for two generated UUIDs to be the same, ensuring uniqueness across different systems and applications. This feature is particularly useful in distributed systems, databases, and applications where unique identifiers are essential for data integrity and management.