What is an 'IP Address'

IP Address stands for Internet Protocol address and is an identifying number that is associated with a specific computer or computer network.


An IP address allows computers to send and receive data over the internet. Most IP addresses are purely numerical, but as internet usage grows, letters have been added to some addresses.

There are four different types of IP addresses: public, private, static and dynamic. While the public and private are indicitive of the location of the network, private being used inside a network while public is used outside of a network, static and dynamic indicate permanency.

A static IP address is one that was manually created, as opposed to having been assigned. A static address also does not change. Unlike a dynamic IP address which has been assigned by a Dynamic Host Configuration Protocol (DHCP) server and is subject to change. Dynamic IP addresses are the most common type of internet protocol addresses.

An IP address can be compared to a Social Security Number (SSN) since each one is completely unique to the computer or user it is assigned to. The creation of these numbers allow routers to know where they are sending information on the internet. They also make sure that correct devices are receiving what is being sent. Much like the post office needs a mailing address to deliver your package, your router needs an IP address to deliver you to the web site you’re looking for.

IP Addresses in the News

There is an online black market called the Dark Web where criminals can deal in illegal and illicit goods. Many of these exchanges take place using the online cryptocurrency Bitcoin, which makes it harder for the authorities to track and capture people participating in these transactions. In 2018, after a yearlong government operation, agents working with the Department of Homeland Security posed as weapons dealers in order to gain access to the computers of suspects who were trying to purchase weapons illegally. This allowed them to gain access to IP addresses, which they used to track down the geographical locations of additional suspects who were using the Dark Web.

This isn’t the first time IP addresses have led to arrests. In 2012, police used IP addresses to track down and arrest members of the hacking group Lulzsec. Using warrants to obtain the information from the Internet Service Provider (ISP), law enforcement personal were able to track down the physical addresses of the hackers, and arrest them for their illegal internet activity.    

  1. Tor

    Tor is an open source privacy network that permits users to browse ...
  2. Address Hygiene

    Address hygiene refers to the precision and purity of postal ...
  3. Internet of Things (IoT)

    The Internet of Things (IoT) is a network comprised of physical ...
  4. COB Fraud

    COB fraud refers to a change of billing address scam, in which ...
  5. Stealth Address (Cryptocurrency)

    Stealth addresses hide the identity of the receiver of a blockchain ...
  6. Address Verification Service - ...

    Address verification service (AVS) is a tool used by credit card ...
Related Articles
  1. Investing

    Profit With Investment Policy Statements

    Defining how investments are managed and monitored can help investors meet their goals.
  2. Investing

    Introduction To Inflation-Protected Securities

    Inflation is an enemy to investors - except to those who invest in IPS, which guarantee a real rate of return with no credit risk.
  3. Tech

    Can Decentralized, Blockchain-based Internet Become A Reality?

    Here’s what a decentralized, blockchain-based internet promises, and where it may face issues.
  4. Trading

    Deep Web Vs. Dark Web

    Understanding how the Internet includes much beyond what most users are familiar with.
  5. Investing

    Behind the Cisco-Ericsson Partnership

    The networking giants say their year-old partnership is on track to deliver $1B in new revenues.
  6. Investing

    Internet of Things Poses Massive Cyberthreat (SYMC, PANW)

    Legacy IT firms and cloud-based cyber startups alike rush to offer organizations worldwide a secure connection between billions of new connected devices.
  7. Investing

    Cisco: Mobile Data Traffic Up Sevenfold by 2021

    Finding: More of the planet will have mobile phones than running water in five years' time.
  8. Insights

    Twitter Sues the Department of Homeland Security

    The social media platform’s lawsuit aims to block government attempts to reveal the identity of a President Donald Trump critic.
  9. Investing

    Broadcom Buys Brocade in $5.9 Billion Deal

    In the first of what will certainly be many steps given the nature of the deal, Broadcom (NASDAQ: AVGO) has acquired network solutions provider Brocade Communications (NASDAQ: BRCD) for $5.5 ...
  1. How do Internet companies profit if they give away their services for free?

    Learn how companies in the Internet sector make a profit when service, content and user applications are offered at no cost ... Read Answer >>
  2. What are the Four Types of Economic Utility?

    Understand the four main types of economic utility that apply to transactions between consumers and businesses: form, time, ... Read Answer >>
Trading Center