Most internet users have heard of the term ‘IP address’ and many will know what it means. However, you may not know that there are two types of IP addresses and that these have unique advantages and disadvantages for you, as the customer. Essentially, an IP address (or internet protocol address) is a unique number assigned to every device on a network, whether it’s your home WiFi or an office network.

This number identifies computers, smartphones, tablets, internet TVs and any internet-enabled device. It lets them communicate with one another and, like houses on a street have numbers, the IP address allows devices to be identified on the network. When you type a website into your web browser, it uses a domain name system (DNS) to search for the IP address for that website, like a telephone directory.

There are two versions of an IP address for each device – IPv4 and IPv6. IPv4 is slightly older and uses four sets of numbers separated by full stops, such as 163.194.0.2. The current internet works on IPv4 but we’ve nearly used up all of the possible IPv4 addresses, so IPv6 was established. This version uses six sets of hexadecimal numbers separated by colons, such as 2002:0bd6:73b4:0000:0001:7r4t:0673:8382. Both of these versions include static and dynamic IP addresses.

What is a static IP address?

Simply put, a static IP address is one that does not change. Once a device is assigned a number, it will not change until the device is decommissioned or the network architecture changes completely. Important devices, such as servers, firewalls, routers and CCTV video recorders, use static IP addresses.

Static IP addresses are assigned by your internet service provider (ISP) if your service agreement includes this stipulation. ISPs will offer public-facing static addresses, although it is possible to have a private-facing one too. Often, a static IP is more expensive than a dynamic one, so it’s more preferential to be assigned the latter.

What is a dynamic IP address?

A dynamic IP address is subject to change at any given moment. These are assigned as needed by dynamic host configuration protocol (DHCP) servers. These addresses are used because there are not enough static IPv4 numbers to go around. For example, a resort may have a static IP address for its main server, but each room will use a dynamic address.

Your home or office may be assigned a dynamic number by your ISP’s DHCP server. This is why a dynamic IP address is more common for consumer devices and networks. ISPs will offer public-facing dynamic IP addresses to residential users, which will change every 24 hours or whenever the router is rebooted. But which one is better and why should it matter to you, as the customer?

Advantages of static and dynamic addresses

There is no perfect IP address solution for all customers and requirements; each one has its pros and cons, depending on the nature of the internet connection. A static address is more likely to benefit a business, whereas a dynamic one is often better for home networks. Here are some advantages of both types:

Static addresses offer better DNS support and are easier to manage. They make it easier for customers to find your website or server using the internet’s DNS. They also make remote work easier and more convenient, especially when using a virtual private network (VPN). A static IP is better suited to business communications, whether it be emails, voice over internet protocol (VoIP) or video conferencing.

Dynamic IP addresses are cheaper and easier to deploy as the DHCP server automatically assigns the next available IP number to a device. This makes it more affordable for the customer. In addition, dynamic addresses can be reused which allows for unlimited use. For example, if you buy a new laptop, it will be automatically assigned a fresh IP address and you won’t have to manually delete the old one. Dynamic addresses also offer better security as it’s more difficult for a hacker to target your device.

Drawbacks of static and dynamic IPs

A static IP is more susceptible to cyber attacks and hackers as they know exactly where your server or device is located. This is why a firewall is recommended for internet networks, as it will authenticate users and protect the network from certain cyber attacks. In addition, ISPs generally charge more for a static address, especially for home fibre networks.

A dynamic address is not ideal for internet-facing services, such as email or websites as they are subject to change. This is why they are rarely used for business purposes. They also limit remote access and make it harder for employees to work from home. This is why many companies require employees to use a VPN to access the business server. What’s more, a dynamic IP results in less accurate geolocation services as it makes your device or network harder to locate in the real world.

Which is best for you?

If you’re signing up for fibre to the business, then you’ll want a static IP address for your servers and websites. However, for fibre to the home, a dynamic address is more beneficial as they are more secure and cheaper. For more information about our fibre offerings or to get a quote for an internet upgrade, please contact us today or check if we’re connected to your address.