IP stands for Internet Protocol. It's a set of rules that governs the format of data sent over the internet or any other network. An IP address is a unique numerical label assigned to each device connected to a computer network that uses the Internet Protocol for communication. IP addresses serve two main purposes: identifying the host or network interface and providing the location of the host in the network. There are two primary versions of IP addresses in use today: IPv4 (32-bit address) and IPv6 (128-bit address).