This is the language ID that the client and server exchange data with. The game compares it upon login: if it matches, it allows access; if not, it displays "Incompatible version!" in the server list and "Client incompatible! Use..." upon login. If the server is older than the client, the version in the server list shows "Outdated" instead.
The number changes almost with every version, but not always: if a patch does not affect data exchange, it preserves the number. Players from other versions can only join via a server plugin — ViaVersion (and ViaBackwards for older clients). To find another server's version — see Server check.