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.
Hosts (file)
The hosts file is one of several system facilities that assists in addressing network nodes in a computer network. It is a common part of an operating system's Internet Protocol (IP) implementation, and serves the function of translating human-friendly hostnames into numeric protocol addresses, called IP addresses, that identify and locate a host in an IP network.