Your IP Address is a string composed of 4 dots and numbers in the format 126.96.36.199 that is assigned to your Internet connection by your Internet Service Provider. You may consider it like your virtual address, used to identify you in case you do bad things or to track your online activity.
Everytime you browse a website with your web browser, your IP address is logged in the log files of the website's web server. It is same when you chat with your friends, everytime you send a message via Skype, MSN, ICQ or PalTalk your IP address is logged in the remote servers of the chat application.
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