Devices on a network require distinct identifiers to ensure data reaches the correct destination at different network layers.

A MAC address (Media Access Control address) is a permanent hardware address burned into a device's network interface card. It identifies a specific device on a local network segment and is used for direct, local communication.

An IP address (Internet Protocol address) is a logical address used to route data packets across multiple independent networks. IPv4 addresses, formatted as numbers such as 192.168.1.5, provide roughly 4 billion unique addresses. Because IPv4 addresses became scarce, IPv6 was introduced with significantly longer addresses to support a vastly larger quantity of connected devices.

Contrary to the misconception that an IP address pinpoints an individual's exact physical location, it typically identifies a general network or geographic region. Furthermore, multiple devices can share a single public IP address through Network Address Translation (NAT).