Every machine on the Internet has a unique identifying number, called an IP Address. A typical IP address looks like this:
The four numbers in an IP address are called octets, because they each have eight positions when viewed in binary form. If you add all the positions together, you get 32, which is why IP addresses are considered 32-bit numbers. Since each of the eight positions can have two different states (1 or 0) the total number of possible combinations per octet is 28 or 256. So each octet can contain any value between 0 and 255. Combine the four octets and you get 232 or a possible 4,294,967,296 unique values!
Out of the almost 4.3 billion possible combinations, certain values are restricted from use as typical IP addresses. For example, the IP address 0.0.0.0 is reserved for the default network and the address 255.255.255.255