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.
Port (computer networking)
The term "port number" was not yet used at this time. It was preceded by the use of the term "socket number" in the early development stages of the network. A socket number for a remote host was a 40-bit quantity. The first 32 bits were similar to today's IPv4 address, but at the time the most-significant 8 bits were the host number. The least-significant portion of the socket number (bits 33 through 40) was an entity called "Another Eightbit Number", abbreviated AEN. Today, "network socket" refers to a related but distinct concept, namely the internal address of an endpoint (used within the node only).