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
Classful network design allowed for a larger number of individual network assignments and fine-grained subnetwork design. The first three bits of the most significant octet of an IP address were defined as the "class" of the address. Three classes ("A", "B", and "C") were defined for universal unicast addressing. Depending on the class derived, the network identification was based on octet boundary segments of the entire address. Each class used successively additional octets in the network identifier, thus reducing the possible number of hosts in the higher order classes ("B" and "C"). The following table gives an overview of this now obsolete system.