An IP Address is the house number in the suburb that is your home network, each piece of technology on your network (phone, PC, laptop, Alexa, etc…) is a house with it’s own address.
On the internet, your network has an IP address too which all your devices share, basically the postcode of your suburb, if anyone wants to send anything to you or you want to go out to somewhere else on the internet, they use that postcode to get to your network and your router uses the house numbers of your network to deliver the information.
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