The kind of links can be defined in admin/general. But the most user friendly one (the one on the top) will generate URLs such as the one on this question:
Or, in more abstract terms:
The number is incremented on each post and is the ID of each post in the database. The rest is irrelevant in technical terms but helps for SEO.
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April 20, 2021: Q2A 1.8.6 released!