An IP address is a numerical label assigned to devices connected to a network using the Internet Protocol. It identifies the device and provides its location. There are two main versions: IPv4 uses 32-bit addresses displayed in decimal separated by dots, while IPv6 was developed to expand the addressing space. IP addresses can be public and globally unique, or private for internal networks. They are assigned dynamically or through autoconfiguration, and must be unique on the same local network to avoid conflicts. IP addresses support different types of communication including unicast for single devices, broadcast for all on a network, and multicast for groups.