Islandwalk is an evasion ability: a creature with islandwalk can't be blocked as long as the defending player controls at least one land with the Island subtype. It only checks the type, not the name, so any land that's an Island—including duals like Tundra or Watery Grave—triggers it, not just basics.
The big misconception is that islandwalk somehow makes the creature unblockable generally. It's conditional—if your opponent controls no Islands, the creature can be blocked normally. It also doesn't grant any other protection; it can still be targeted by removal, blocked if the player's Islands leave, or stopped by abilities like "can't attack."
In Commander's multicolor format, blue is everywhere, so islandwalk is more reliable than in two-player games. It shines against heavy-blue tables and pairs well with effects that turn opponents' lands into Islands (like Spreading Seas) to guarantee unblockability.