Mobile IP is an open standard that allows devices to change networks while maintaining the same IP address. This allows ongoing connections and applications to continue without being dropped when the device roams to a new network. Mobile IP works by assigning the device two IP addresses - a home address that stays the same and a care-of address that changes based on the new network point of attachment. Tunneling is used to forward packets to the device's current location. Mobile IPv6 improves upon Mobile IPv4 by simplifying the mobility management process and integrating support for route optimization.