IP or lesser known Internet Protocol is something that you must have heard many times regarding computers and networking. This is because it is an integral part of every electronic device which can be connected to a network, for sending or receiving data.
And IP is a set of digital or hexadecimal numbers separated by point values to give a unique identity to every component connected via a network. This address gives unique identification to each is the peripheral devices which can be utilized for transmission of data over some medium.
So, coming to the other part of your question, an ip may be used for hundreds of purposes ranging from internet transmission to data transfer. So, here are some of the main works in whi ip could contribute at some extent:
1. Internet Connectivity
2. Data transfer
3. Network troubleshooting
4. Firewall accessing
5. FTP protocols
6. Encryption of a network
7. Creation of local and wide servers
8. Creating network of networks
9. Local dealing of inside networks in companies
10.IOT based devices and protocols
Due to a vast number of functionality, ip plays an integral part in every network based scenario for every device.i hope this answer will help you getting the basic knowledge about IP without getting into the technical aspects of it.