What is the purpose of an IP address?

An IP address serves the critical function of uniquely identifying a device on a network. Each device connected to the internet or a local network requires a specific address so that it can send and receive data effectively. This unique identifier allows routers and switches to direct data traffic to its intended destination and ensures that communication occurs seamlessly between devices.

Every device that connects to the internet or a local network—whether it's a computer, smartphone, printer, or any other smart device—needs an IP address to be recognized by the network and to communicate with other devices. This fundamental aspect of networking makes it possible to establish connections and transfer data without confusion or overlap between devices.

While encryption, credential storage, and bandwidth management are important functions in network security and performance, they do not pertain to the primary role of an IP address in identifying devices.