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Application containers are characterized by their ability to isolate applications while sharing operating system resources. This feature is crucial because it enables multiple applications to run on the same OS while keeping them isolated from each other, effectively managing dependencies and minimizing conflicts. This lightweight approach allows for the efficient use of system resources, as containers can be rapidly started, stopped, and deployed without the overhead of full virtual machines, which require their own operating systems.

The architecture of containers means that while they offer application isolation, they do utilize a common underlying OS kernel, both improving performance and reducing the number of required resources compared to traditional virtualization where each instance would need to run a separate OS. This characteristic is particularly advantageous in microservices architectures and cloud deployments, where scalability and efficiency are key.

In summary, the provision of isolation coupled with resource sharing is the defining trait of application containers, making them a popular choice for modern application deployment and management strategies.