An identity column in SQL Server creates an auto-incrementing numeric sequence of values. When an insert is made into a table with an identity column, a value does not need to be put in the identity column. The value of the identity column is automatically filled in.
Identity columns are used when it is required to automatically number each row as it comes into the table. The identity column’s seed (starting value) and increment can be set at the time of creation of the identity column. So every time a row is added to the table it is assigned a number obtained by adding the increment to the old value (this value will be the seed for the first row)
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