An IP address is the location of a given computer or other network device on an IP network. It tells other devices where to go to "talk" to that computer/device. Think of it like a phone number.
A MAC address is kind of a serial number for network devices like ethernet cards - the first half of the MAC address tells what brand/model the card is, and the second half is a unique identifier specific to that card. Think of it like the VIN (Vehicle Identification Number) on your car.
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