Versioning allows you to edit an asset, upload a new 'version' (e.g. an updated logo), and then save. Now, the latest version will be visible, and the older one will be hidden from view. Doing this is quicker than deleting the asset and then uploading a new one (as you would need to enter the metadata again). It also allows you to see the history of an asset.

There are additional settings that control whether a previous version can be edited and whether users or admins can search for previous versions of assets. By default, these options are not enabled.