UUID's are a great tool if you need a way to uniquely identify a resource. Let's say for example you have 100 different player defined types in a list, you can give them each a uuid to tell them apart and reference a specific instance. This approach relies entirely on pseudo random number generation and each individual bit is generated with a Random(0,1) call then converted to hex. Notice as well that we assign specific values in the same position everytime. This is because uuid's actually reserve a few bits to indicate what type of uuid it is.
Wanted to post my source for how this was generated: https://digitalbunker.dev/understanding-how-uuids-are-generated/