IP addresses are unique identifiers for devices communicating over networks. Standing for Internet Protocol, they adhere to standardized formats that enable data routing across the internet. In data collaboration, IP addresses provide signals for geographic targeting, fraud detection, and network-level analytics.
IPv4
The most common format, IPv4 addresses consist of four octets (8-bit numbers) separated by periods. Each octet ranges from 0 to 255.
192.168.1.1
74.125.224.72
- 32-bit address space
- ~4.3 billion possible addresses
- Running out of available addresses globally
IPv6
Developed to expand the address pool, IPv6 uses a 128-bit address format with eight groups of four hexadecimal digits separated by colons.
2001:0db8:85a3:0000:0000:8a2e:0370:7334
- 128-bit address space
- ~340 undecillion possible addresses
- Growing adoption but not yet universal
IPv6 addresses can be abbreviated by omitting leading zeros and collapsing consecutive zero groups with ::. The address above could be written as 2001:db8:85a3::8a2e:370:7334.
Types of IP addresses
Public vs. private
| Type | Description | Example Ranges |
|---|
| Public | Globally routable, assigned by ISPs | Most addresses outside reserved ranges |
| Private | Used within local networks, not routable on internet | 10.x.x.x, 172.16-31.x.x, 192.168.x.x |
Static vs. dynamic
| Type | Description | Use Cases |
|---|
| Static | Remains constant over time | Servers, business connections |
| Dynamic | Changes periodically, assigned by DHCP | Residential connections, mobile |
Dedicated vs. shared
| Type | Description | Context |
|---|
| Dedicated | Single device or organization | Direct server access |
| Shared | Multiple users behind the same IP | NAT, VPNs, corporate networks, mobile carriers |
IP addresses in data collaboration
Geographic signals
IP addresses can be mapped to approximate geographic locations:
- Country: High accuracy
- Region/State: Generally reliable
- City: Moderate accuracy
- Postal code: Less reliable
- Street level: Not reliable
IP geolocation is useful for:
- Regulatory compliance (geo-restrictions)
- Regional targeting
- Fraud detection (location mismatches)
IP geolocation is approximate and can be inaccurate, especially for mobile users and VPN users. Never rely on IP location for critical decisions requiring precise location.
Fraud and security signals
IP addresses provide useful signals for fraud detection:
- Known proxy/VPN IP ranges
- Data center vs. residential IPs
- Bot traffic identification
- Rate limiting and abuse detection
Privacy considerations
IP addresses are considered personal data under GDPR and may be subject to other privacy regulations:
- They can identify households or organizations
- Combined with other data, they may identify individuals
- Collection requires appropriate legal basis
Working with IP addresses
Normalization
When matching IP data across sources:
- Validate format (proper IPv4 or IPv6 structure)
- Handle leading zeros consistently
- Consider canonicalizing IPv6 addresses
Storage
| Format | Storage Size | Notes |
|---|
| String | Variable | Human-readable, flexible |
| Integer (IPv4) | 4 bytes | Efficient for IPv4 only |
| Binary (IPv6) | 16 bytes | Supports both versions |
Matching limitations
IP addresses are session-level identifiers, not user-level:
- Dynamic IPs change over time
- Shared IPs represent multiple users
- Mobile IPs change as users move between networks
For user-level matching, IP addresses are typically combined with other signals or used as one factor in probabilistic matching.
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