Major versions appear as whole numbers (i.e., version 1, 2, 3, etc) while versions with minor numbers appear as decimals (i.e., 1.0, 3.51, etc).
Lists only use major versions whereas libraries can major and/or minor versions to track changes to its items.
Minor versions in libraries are assigned to documents that are in Draft status. If a document is Published, it will increment to the next major version. For example, if you publish version 3.51, it becomes version 4.0.
Distinguishing between draft and published status is required to use Draft Item Security (also configured in Version Settings).
Draft Item Security can be set on both items and libraries to restrict who can see Draft versions. For example, you create a FAQ list for end-users to access support documents. You allow end-users to see only published documents (major versions) while allowing the only support personnel to create and view new or revised documents within the same library.
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