Earlier versions of TCP/IP were a combined specification through TCP/IPv3. With IPv4, the Internet Protocol became a separate specification.

Internet Protocol version 4 is described in IETF publication RFC 791 (September 1981), replacing an earlier definition of January 1980 (RFC 760). In March 1982, the US Department of Defense decided on the Internet Protocol Suite (TCP/IP) as the standard for all military computer networking.

The Internet Protocol is the protocol that defines and enables internetworking at the internet layer of the Internet Protocol Suite. In essence it forms the Internet. It uses a logical addressing system and performs routing, which is the forwarding of packets from a source host to the next router that is one hop closer to the intended destination host on another network.

IPv4 is a connectionless protocol, and operates on a best-effort delivery model, in that it does not guarantee delivery, nor does it assure proper sequencing or avoidance of duplicate delivery. These aspects, including data integrity, are addressed by an upper layer transport protocol, such as the Transmission Control Protocol (TCP).

In the 1980s, it became apparent that the pool of available IPv4 addresses was depleting at a rate that was not initially anticipated in the original design of the network. The main market forces that accelerated address depletion included the rapidly growing number of Internet users, who increasingly used mobile computing devices, such as laptop computers, personal digital assistants (PDAs), and smart phones with IP data services. In addition, high-speed Internet access was based on always-on devices. The threat of exhaustion motivated the introduction of a number of remedial technologies, such as:
• Classless Inter-Domain Routing (CIDR), for smaller ISP allocations
• Unnumbered interfaces removed the need for addresses on transit links.
• Network address translation (NAT) removed the need for the end-to-end principle.
By the mid-1990s, NAT was used pervasively in network access provider systems, along with strict usage-based allocation policies at the regional and local Internet registries.

The primary address pool of the Internet, maintained by IANA, was exhausted on 3 February 2011, when the last five blocks were allocated to the five RIRs. APNIC was the first RIR to exhaust its regional pool on 15 April 2011, except for a small amount of address space reserved for the transition technologies to IPv6, which is to be allocated under a restricted policy.

The long-term solution to address exhaustion was the 1998 specification of a new version of the Internet Protocol, IPv6. It provides a vastly increased address space, but also allows improved route aggregation across the Internet, and offers large subnetwork allocations of a minimum of 2 host addresses to end users. However, IPv4 is not directly interoperable with IPv6, so that IPv4-only hosts cannot directly communicate with IPv6-only hosts. With the phase-out of the 6bone experimental network starting in 2004, permanent formal deployment of IPv6 commenced in 2006. Completion of IPv6 deployment is expected to take considerable time, so that intermediate transition technologies are necessary to permit hosts to participate in the Internet using both versions of the protocol.