About IPs

What Are IPv4 Addresses
— And Why Are They Valuable?

Every device connected to the internet — from smartphones and laptops to data centers and smart appliances — requires an IP (Internet Protocol) address to function. Think of an IP address as a digital passport that allows devices to communicate, identify each other, and exchange data across the global internet.

Unique, Finite, and Foundational

IP addresses are unique numerical identifiers, meaning no two devices on a network can share the same one. These addresses exist as part of a continuous range defined and maintained by global registries. To make them usable for humans and systems alike, they’re typically written in a recognizable format — such as 192.168.1.1.

There are two primary versions of IP addresses in use today:

IPv4 (32-bit)

The original and most widely used protocol, capable of supporting 4.3 billion unique addresses

IPv6 (128-bit)

The newer protocol, designed to address IPv4 exhaustion by providing a vastly larger address space

Why Is IPv4 Still So Critical?

Despite the theoretical promise of IPv6, IPv4 continues to dominate the global internet ecosystem. Here’s why:

🚫 IPv6 Is Not Backward Compatible

IPv6 was designed as a separate protocol — not a direct extension of IPv4. That means IPv4-based systems cannot communicate with IPv6 systems natively. Dual-stack configurations and translation mechanisms are needed, which adds complexity and cost for network operators.

💡 The Result: IPv4 Remains Essential

As a result of these limitations, IPv4 addresses remain the backbone of internet communication. And because the global supply was exhausted in 2011, they’ve become a scarce, in-demand asset with strong investment and leasing potential.

🐢 Slow and Uneven Adoption

While IPv6 is being adopted in some regions and by certain tech-forward companies, global deployment is inconsistent. Many ISPs, hosting providers, and end-users still operate almost entirely on IPv4. This fragmented rollout means businesses can’t rely solely on IPv6 for global reach or seamless connectivity.

💡 The Result: IPv4 Remains Essential

As a result of these limitations, IPv4 addresses remain the backbone of internet communication. And because the global supply was exhausted in 2011, they’ve become a scarce, in-demand asset with strong investment and leasing potential.

How IPs Are Used

Large blocks of IP addresses are originally distributed by Regional Internet Registries (RIRs). These are broken down into smaller ranges (subnets or networks), which are then assigned by Internet Service Providers (ISPs) or sold/leased to organizations.

For example:

  • A cloud provider may need thousands of IPs to assign to virtual machines
  • A cybersecurity company may lease IPs for clean traffic routing
  • A business expanding its online operations may require more IPs for scaling infrastructure

Summary

IPv4 addresses are more than just technical necessities — they are strategic digital assets. With limited supply, universal compatibility, and critical importance to modern infrastructure, they continue to drive connectivity and digital growth.
At NetAxis Group, we help clients acquire, lease, and manage IPv4 resources to support their operations in a world where connectivity is currency — and IPv4 is still king.