Imagine trying to send a letter without knowing the recipient’s address. You couldn’t simply hand it to a clerk at the post office and expect them to deliver it based on a name alone. Yet, this is exactly how internet navigation works. Users rely on domain names, but computers need IP addresses to make the connection.
An Internet Protocol (IP) address functions like a physical address in the real world. They uniquely identify devices on a network, allowing users to access websites, applications, and services. These addresses are more than just a series of numbers, they enable devices to communicate and transmit data effectively. From distinguishing between IPv4 and IPv6 to understanding the significance of public, private, static, and dynamic IP addresses, these concepts build the foundation for recognizing how online networks function.
Let’s take a deeper look.
The Role of IP Addresses in Networking
IP addresses are unique number sets that are assigned to online-capable devices. Without them, your phone or computer wouldn’t know where to send or receive data. They enable communication between devices, acting like digital addresses that guide information to the right destination across the internet or within local networks.
Each IP address serves two main functions:
- Identification: It uniquely identifies a device on a network.
- Location addressing: It helps route data packets to the correct destination.
What are the Different Types of IP Addresses?
Before data can move across the internet, every device needs an IP address, a unique identifier that helps route traffic to and from the right destination. But not all IP addresses work the same way.
IPv4 vs. IPv6
Established in the early days of the internet, IPv4 version is a 32-bit address and allows for over 4 billion unique addresses. However, with the rapid growth of internet-connected devices, the supply of IPv4 addresses has reached exhaustion. Despite this, IPv4 remains the most widely used addressing protocol, and techniques like Network Address Translation (NAT) and Classless Inter-Domain Routing (CIDR) have extended its usability. IPv4 addresses are written in dotted decimal format, for example, 127.0.0.1.
In contrast, IPv6 was designed to go the distance, creating an address space to meet the needs of a vast and growing internet. It uses a 128-bit address structure, enabling an almost limitless pool of addresses; approximately 340 undecillion (340 trillion trillion trillion). IPv6 addresses are written in colon-separated hexadecimal notation.
Here’s an example of each protocol:
- IPv4: 0.2.0
- IPv6: 2001:0db8:85a3:0000:0000:8a2e:0370:7334
- Note: IPv6 also has a shorthand notation, so this address would be simplified to 2001:db8:85a3::8a2e:370:7334
The transition to IPv6 is crucial for accommodating future internet growth, particularly as the number of Internet of Things (IoT) and mobile devices increases.
Public vs. Private IP Addresses
Every device on the internet needs an address, and much like physical addresses there are public and private IPs.
Picture your public IP address like a Post Office address. A PO box is often used in lieu of a home address for privacy or business purposes. Public IP addresses are assigned by Internet Service Providers (ISPs) and are globally unique. They enable devices to communicate with other systems on the public internet, for example, by accessing a website or sending an email.
However, the Post Office usually requires you to provide your physical address to open a PO box. Private IP addresses are analogous to a physical address used to register for a PO box. These addresses aren’t routable on the public internet and typically operate behind a NAT system. NAT acts like a translator, enabling multiple devices on a private network to share a single public IP when accessing the internet.
Static vs. Dynamic IP Addresses
Static IP addresses do not change and are manually configured, making them ideal for servers, remote access tools, and applications that require a fixed address. Because of their consistency, static IPs make it easier to host services like websites or file servers.
Dynamic IP addresses are assigned automatically by a Dynamic Host Configuration Protocol (DHCP) server and can change over time. This flexibility makes them well-suited for consumer devices. Dynamic IPs are cost-effective, easier to manage at scale, and offer a small layer of security through address rotation.
Consumer vs. Website IP Addresses
Consumer IP addresses are used for everyday internet access: browsing, streaming, and working online. These can be public (assigned to your router) or private (used within your home network).
Website IP addresses, however, can have dedicated or shared addresses:
- Shared IP: Multiple websites reside on a single IP address. This is common with basic hosting plans and is cost-effective for smaller websites.
- Dedicated IP: A single website has its own unique IP address. This is often used for high-traffic sites, such as eCommerce platforms. Dedicated IP addresses can help prevent blacklisting and improve email deliverability reliability.
How IP Addresses Facilitate Internet Communication
An IP address helps devices find and connect to the websites or services you want to access. Every data packet sent across the internet includes metadata that identifies both the source IP address (where the data is coming from) and the destination IP address (where it’s going to).
Routing Data Between Devices
When data travels over the internet, it’s broken into smaller units called packets. Each packet contains both the source and destination IP addresses. Routers (think of these as the traffic directors of the internet) use the destination IP to determine the most efficient path to deliver each packet to its intended device.
In many networks, especially business networks, NAT is used to allow multiple private IP addresses to share a single public IP. When packets leave the local network, the router replaces the private IP with the public one. When responses return, NAT maps them back to the correct internal device.
In some cases, multicast addressing is used to send a single data packet to multiple recipients. Instead of duplicating packets for each device, the router transmits one packet that is duplicated only where necessary in the network. This makes it highly efficient for things like live video streams, financial data feeds, or online gaming updates.
Together, IP addressing and intelligent routing make real-time, global communication possible.
How Do IP Addresses Work With DNS?
When a user wants to visit a website, they don’t type an IP address into their browser. Instead, they enter a domain name, such as dnsmadeeasy.com. Then, Domain Name System (DNS), commonly referred to as the internet’s phone book, translates the easy-to-remember domain name into a machine-readable IP address so that browsers know where to connect. DNS uses records to map domain names to IP addresses. The two most common types are:
- A records: which map a domain to an IPv4 address
- AAAA records: also, called a Quad A record, maps a domain to an IPv6 address
Domains can use either or both record types. For full compatibility, many websites dual-stack by including both A and AAAA records, allowing them to support both IPv4- and IPv6-capable devices.
It’s not strictly true that every domain must have an A record; if all traffic comes from IPv6-enabled clients and the domain has a valid AAAA record, it can still function. However, since most internet traffic today still relies on IPv4, A records are usually necessary for broad accessibility. Devices using only IPv6 cannot directly communicate with IPv4-only systems unless a translation mechanism (like NAT64) is in place.
Understanding IP Address Allocation
The distribution of IP addresses is a globally coordinated process overseen by the Internet Assigned Numbers Authority (IANA) and five Regional Internet Registries (RIRs). IANA allocates large blocks of IP address space to the RIRs, which then distribute smaller allocations to Local Internet Registries (LIRs); typically ISPs and large organizations.
This hierarchical allocation model helps prevent duplication, ensures fair distribution, and supports efficient routing across the global internet. By organizing IP address management in this way, the system maintains structure, reduces conflicts, and promotes stable internet operations worldwide.
In 2011, IANA officially exhausted its pool of unallocated IPv4 addresses. Since then, RIRs have continued to allocate their remaining stocks until depletion. For example, RIPE NCC (Europe’s RIR) ran out of available IPv4 addresses in 2019. As a result, ISPs and organizations increasingly rely on reclaimed or transferred IPv4 addresses, often purchasing them at a premium on the secondary market.
The Future of IP Addresses
As the internet continues to expand, so does the demand for IP addresses. The growing number of connected devices is quickly exhausting even the life-extending options for IPv4. The reality is IPv4 simply wasn’t built for the scale of today’s internet.
Yet, despite its advantages, IPv6 adoption has been gradual.
IPv6 Adoption Trends
Data from Google shows IPv6 global adoption reached just under 50% as of early 2025. While progress is steady, several challenges continue to slow widespread deployment.
In the United States, ISP hesitancy remains a hurdle for increased adoption. Many internet service providers, especially smaller or regional ones, still don’t offer full IPv6 support or monitoring tools. Without reliable IPv6 service from ISPs, users may face connectivity issues or limited access to IPv6-enabled websites and services.
Technical constraints may contribute to the slow pace of adoption. While many modern devices are IPv6-capable, businesses that haven’t upgraded their hardware may face upfront costs to enable full IPv6 compatibility. Another burden on internal teams is the lack of interoperability between IPv4 and IPv6. Because the two protocols are not directly compatible, organizations must rely on dual-stack configurations, running both protocols side by side, to ensure consistent connectivity. This adds operational complexity and workload for IT teams.
Finally, the transition can also present challenges in configuring and managing DNS in an IPv6 environment. IPv6 addresses are longer and use hexadecimal notation and shorthand notations that can be confusing to administrators more familiar with IPv4, making manual configuration and troubleshooting more prone to errors. Ensuring compatibility with existing IPv4 infrastructure, managing address resolution, and handling the various IPv6-specific settings require a deep understanding of both network protocols.
Bridge the Gap Between IPs and Domains
Understanding how IP addresses work is just the beginning to optimizing your digital infrastructure. DNS Made Easy, simplifies managing the DNS records that connect your domain to the right IP, ensuring speed, reliability, and uptime. Whether you’re configuring A or AAAA records, our robust DNS infrastructure and intuitive tools help keep your websites and services online and optimized.
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