An IP Address is a unique identifier assigned to each device connected to a network that uses the Internet Protocol for communication. It serves two main functions: identifying the host or network interface and providing the location of the device in the network. IP addresses can be either IPv4 or IPv6, with IPv4 being the most commonly used format. IP addresses are essential for routing internet traffic, allowing data to be sent and received between devices. They can be static, remaining constant over time, or dynamic, changing with each connection. Understanding IP addresses is crucial for network management and security.