This'll get a little nerdy, but bear with me:
As long as a key value is unique, it'll serve its function. But for performance, you ideally want that key value to be as short as possible.
GUIDs are commonly used, because they are statistically highly unlikely to ever be repeated. But that comes at the expense of size: they are 128 bits long, which makes them longer than a machine word. To compare two GUIDs (as must be repeatedly done when sorting, or migrating down a b-tree for indexes) will take multiple processor intructions to load and compare the values. And they will consume more memory when cached into memory.
The advantage of auto-incrementing key values is that
- They are guaranteed to be unique. Proxy index values are only predicted to be unique.
- Because they will have full value coverage over the range of their underlying datatype, the most compact possible type may be used. This makes for smaller indexes and more efficient compare operations
- Because the smallest possible type can be used, more index values can be stored on a single database page, which means you're more likely to get a cache hit when searching or joining on that value. That means that peformance will be--all other things being equal--somewhat better.
- On most databases, auto-incrementing keys are worked into the database engine, so there is very small overhead in generating them.
- If you employ a clustered index on your key value, new record inserts are less likely to require a random disk seek, and more likely to be read during read-ahead, so if you do any kind of sequential processing or lookup based on that key, it'll probably run faster.