An IP address is a unique number that identifies a device on a network. IP stands for Internet Protocol, which defines the format for sending data over the internet or networks. IP addresses contain location information and allow devices to communicate by identifying the destination address. They are divided into a network and host part, and can be represented in decimal or binary notation. IPv4 is currently used, while IPv6 is an upcoming replacement that improves on IPv4. IP addresses can be public, assigned by ISPs, or private for internal networks.