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.
IPv6
The last unassigned top-level address blocks of 16 million IPv4 addresses were allocated in February 2011 by the Internet Assigned Numbers Authority (IANA) to the five regional Internet registries (RIRs). However, each RIR still has available address pools and is expected to continue with standard address allocation policies until one /8 Classless Inter-Domain Routing (CIDR) block remains. After that, only blocks of 1024 addresses (/22) will be provided from the RIRs to a local Internet registry (LIR). As of September 2015, all of Asia-Pacific Network Information Centre (APNIC), the Réseaux IP Européens Network Coordination Centre (RIPE_NCC), Latin America and Caribbean Network Information Centre (LACNIC), and American Registry for Internet Numbers (ARIN) have reached this stage. This leaves African Network Information Center (AFRINIC) as the sole regional internet registry that is still using the normal protocol for distributing IPv4 addresses. As of November 2018, AFRINIC's minimum allocation is /22 or 1024 IPv4 addresses. A LIR may receive additional allocation when about 80% of all the address space has been utilized.