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.
Care-of address
Used in Internet routing, a care-of address (usually referred to as "CoA") is a temporary IP address for a mobile device. This allows a home agent to forward messages to the mobile device. A separate address is required because the IP address of the device that is used as host identification is topologically incorrect - it does not match the network of attachment. The care-of address splits the dual nature of an IP address, that is, its use is to identify the host and the location within the global IP network.