Every device connected to a network needs an IP address. This is automatically assigned when you log on to a network. It will be reassigned when you connect to different networks, for example at home and at school. Your IP address may even change if you reset your router. IP addresses contain 4 numbers between o and 255 (8 Bits or 1 Byte), for example 123.45.6.70. The IP address is required to allow devices to communicate.
Each packet sent includes the IP address of the device that the packet is being sent to.
Difference from a MAC address – A MAC address is built in to the device by the manufacturer to identify the device.