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Serial numbers are frequently designed in structured formats to enhance readability, accuracy, and consistency in both digital and manual use. A widely adopted format consists of four or more fixed-length alphanumeric blocks separated by dashes (e.g., AB12-CD34-EF56-GH78). This segmentation method serves several practical purposes.

First, dividing a longer string into equal-length blocks makes the code visually manageable and significantly reduces the likelihood of transcription errors. Humans find it easier to read, memorize, and type data in grouped segments rather than in one continuous string.

Second, the inclusion of both letters and numbers in fixed blocks increases the potential uniqueness of each serial number while maintaining a controlled and predictable structure that systems can easily validate or parse. Dashes act as natural delimiters, which simplify automated processing by software applications, such as license verification systems or inventory tracking tools.

Finally, this format provides scalability. As needed, additional blocks can be appended without altering the fundamental structure, supporting expanding product lines or system complexity. The balance between complexity (to avoid collisions or duplication) and usability (to ease human interaction) is the key reason this format remains one of the most popular for serial number design.