Your IP address is a unique number given to you by an Internet Service Provider (ISP) to identify your device on the Internet. It is needed to identify and send information between devices on the network like sending emails, streaming video, and chatting online.
An IP stands for Internet Protocol and is a set of 4 numbers separated by periods. Each set ranges from 0 to 255 ie. 0.0.0.0 to 255.255.255.255. eg: 192.168.0.1.
When you try to access the internet using WiFi or LAN. Your device is connected to the local network through a router. Your device will get a unique local IP address from the router eg: 192.168.10.10. Your router will also have a unique IP address which is provided by the ISP. This IP address is unique around the globe.
When you stream video or chat, information is transferred to your global IP address then the router transfers this to the device to which you are connected. The IP address provided by the ISP provider can be static or dynamic. If it is static, no matter how much you restart your router the IP remains the same. If it is dynamic, on each router restarts, the IP address keeps on changing. The IP address can also change automatically and regularly at certain intervals.
We need a static IP address for the device if we want to be found in the network by other devices. We need a static IP address for the network print server or web server. Gaming servers and websites need static IP addresses.
Dynamic IP address is mostly used in home networks. It protects your online privacy and security as your IP address keeps on changing regularly. Most of the public doesn't need to be found on the internet as they online use services from others like streaming videos, playing games, or chatting.