What is an IP Address? - How Do IP Addresses Work?

Last Update: 28.04.2026

IP addresses are unique numerical identifiers used by devices on the internet and other computer networks to recognize each other and communicate. IP stands for "Internet Protocol," and it is a fundamental building block for network communication. These addresses enable each device on a network to exchange data with other devices. IP addresses are generally classified into two main types: IPv4 and IPv6.

IPv4

IPv4 (Internet Protocol Version 4) is one of the fundamental communication protocols of the internet, officially introduced in 1981. IPv4 has a 32-bit addressing system, allowing for the creation of 4.3 billion different IP addresses. Each IP address is represented by four groups of numbers (ranging from 0 to 255) in decimal format, separated by dots (e.g., 192.168.1.1).

IPv6

IPv6 (Internet Protocol Version 6) was developed to overcome the limitations of IPv4. It was standardized in 1998 by the IETF. IPv6 features a 128-bit addressing system, providing approximately 340 undecillion unique IP addresses. IPv6 addresses are written in hexadecimal format, organized into eight groups separated by colons (:).

Allocation of IP Addresses

The management of IP addresses is overseen by the IANA (Internet Assigned Numbers Authority). IANA distributes IP addresses to five Regional Internet Registries (RIRs):

  • ARIN: North America
  • RIPE NCC: Europe, Middle East, Central Asia
  • APNIC: Asia-Pacific
  • LACNIC: Latin America and Caribbean
  • AFRINIC: Africa

Applications

IP addresses are used for network communication, server hosting, IoT device identification, remote access, and geolocation services. Essentially, every device connecting to a network requires an IP address to function correctly.