The significance of version control in collaborative coding lies in its ability to track changes, manage code revisions, and facilitate teamwork among developers. Tools like Git allow multiple contributors to work on the same project simultaneously while maintaining a comprehensive history of file changes. This enables developers to revert to previous versions if needed, resolve conflicts, and understand the evolution of the codebase. Effective version control fosters accountability, streamlines collaboration, and enhances the overall quality of the project by preventing conflicts and accidental data loss.