Version control, also known as source control, is a crucial practice in software development that involves tracking and managing changes to code over time. It allows developers to maintain a history of modifications, making it easier to collaborate, revert to previous versions, and manage different project iterations. By using version control systems (VCS), teams can avoid common pitfalls such as lost code or conflicting changes, thereby enhancing efficiency and productivity. This practice is essential not only for large teams but also for individual developers, as it provides a structured way to handle code changes and maintain project integrity.