IPv6 addresses are composed of 128 bits organized into eight 16-bit blocks, represented as hexadecimal numbers separated by colons. The document outlines various types of IPv6 addresses (global unicast, link-local, unique-local, anycast, multicast) and their characteristics, along with rules for shortening IPv6 addresses. Key benefits of IPv6 include eliminating NAT, facilitating auto-configuration, and providing enhanced security and routing efficiency.