Understanding the 'package' statement in Java

The purpose of the 'package' statement in Java is to define a namespace for classes. It's an essential element of Java programming as it helps in effectively organizing the code, keeping it tidy, and avoiding name conflicts.

The 'package' keyword is typically the first keyword in a Java source file and is followed by the name of the package. This notation encapsulates related classes, interfaces, enumerations, and annotations together to make the code more manageable.

For instance, if you are developing a library management system, you could categorize relevant classes into different packages like com.library.books, com.library.members, com.library.transactions, etc. Each package name is unique, hence it avoids the risk of naming conflicts.

package com.library.books;

public class Book {
  // Class implementation
}

Here, the 'package' statement at the top defines that the Book class belongs to the com.library.books package.

Practical Applications and Best Practices

1. Code Organization: Package enhances code organization by grouping similar classes and interfaces. It's easier to find and use these classes when they are arranged systematically.

2. Access Control: Package provides an extra layer of access control. With the 'package' keyword, classes can use package-private access control, allowing class access strictly within the same package.

3. Name Collision: The 'package' keyword ensures that there won't be any naming collision between class names, even if they share the same name but belong to different packages.

4. Reusable Components: Packages accommodate reusable classes and interfaces in a way that they can be easily used by other applications just by importing the respective package.

When deciding a package naming scheme, it is a standard convention to use your internet domain name in reverse as a prefix for the package. This ensures that your package names are unique, evading conflicts with other developers around the globe.

In conclusion, the Java package is not just a naming convention but a significant part of Java's modular programming approach, facilitating better code organization, reusability, and maintainability.