Version 4 UUIDs are randomly generated. The primary advantage of this approach is its simplicity and the high likelihood of uniqueness due to the vast number of possible combinations. This version doesn't carry any meaningful information about the UUID's origin, which is useful for privacy and security reasons. However, the randomness means it doesn't provide any chronological or node-specific data, making it less suitable for scenarios needing time-based sorting. Version 4 UUIDs are widely used because of their simplicity and effectiveness in ensuring uniqueness.