An IP Address or Internet Protocol address is a communication configuration that is set up on a workstation that enables the workstation to see/be seen by others.  It consists of 4 numbers (ranging from 0 - 255) seperated by periods called octets.  An example is 192.168.0.10. 

 

Each workstation must have a unique IP Address.  Think of an IP address in terms of a home address.  Each home has its own street address.  When information (such as mail) needs to reach the destination (your home), the mail carrier determines the destination based on the address on the envelope.  IP traffic operates in much the same way.