IP address
An IP address serves two principal functions. It identifies the host, or more specifically its network interface, and it provides the location of the host in the network, and thus the capability of establishing a path to that host. Its role has been characterized as follows: "A name indicates what we seek. An address indicates where it is. A route indicates how to get there."
The header of each IP packet contains the IP address of the sending host, and that of the destination host.
IP address
Just as IPv4 reserves addresses for private networks, blocks of addresses are set aside in IPv6. In IPv6, these are referred to as unique local addresses (ULAs). The routing prefix is reserved for this block, which is divided into two blocks with different implied policies. The addresses include a 40-bit pseudorandom number that minimizes the risk of address collisions if sites merge or packets are misrouted.