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WHAT ARE IPs AND WHY DO THEY MATTER?

Updated: Nov 8, 2023

The internet has revolutionized the way we communicate, conduct business, and access information. However, every device that connects to the internet needs a unique identifier to communicate with other devices. This identifier is known as an IP address. In this blog, we will discuss what IP addresses are, how they work, and why they matter.


What are IP addresses?

Picture yourself shopping online, adding items to your cart. One of the essential steps to complete your order is put the address you want your purchased items to be delivered to, otherwise the shipping company won't find any address to send your items to and won't deliver your items.

Your IP is the same thing, it's your internet address that allows the process of sending and receiving from the network. IP addresses are essential for the functioning of the internet. Without them, the internet as we know it would not exist.


How do IP addresses work?

As an Internet user, your IP address is assigned by your Internet service provider (ISP). It is an ISP's role to assign an IP address to your computer.

Picture this to get a clear idea, When you enter a website's URL in your browser, your device sends a request to the website's server. The server receives the request and responds by sending the website's data back to your device. This communication occurs through a series of network connections, and each connection requires the devices to exchange IP addresses.


Why do IP addresses matter to your business?

1. IPs are essential for your business existence, If you're an ISP or Domain provider or work in the Tech industry.

(Average IPv4 sale prices, 2011-2022. Source: IPXO.com)


2. IPs' market value have seen a huge increase in the past few years due to the high demand of IPs. IPs Prices rose from around $5 per IP address in 2011 to an average of $50 in 2022.


3. IPs continues availability when you own them will save your time and effort, trying to acquire new IPs isn't easy. Having available IPs give you the chance to grow and expand your business.


4. IPs Give your business ultimate security, when you have your own IPs, owning your own address block provides more options to select vendors for protection from Distributed Denial of Service (DDOS) attacks.


5. IPs play a huge role in any E-commerce business, as they can track user activity and customize content based on the user's location.


6. IPs makes it possible for IT staff and software programs to track of everything in your organization; without IPs, it will be impossible to keep track of all this data and files, etc.

7. IPs are beneficial for any business that handles sensitive customer data, letting your customers know that you care about their privacy is paramount to earning their trust.


8. IPs allows your team to safely access private network resources from both work and personal devices, which is crucial in today's post-Pandemic hybrid work environment.


In Conclusion

An IP is like your home address on the internet, it identifies your device. It's what allows our laptops and computers to send and receive from any network. IPs are the core to the structure it's the internet as we know today.

IPs play a huge role in the business world. As a business owner, IPs are either essential for all businesses. Moreover, IPs are especially crucial for businesses that work on the Internet or Tech Industry, such as Internet service Providers and domain providers.


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