The current version of Internet Protocol (IP), the communications protocol underlying the Internet, is version 4. In IPv4, the address of any machine on the Internet, whether a client or a server, is encoded in 4 bytes. Due to various overheads, the total number of addresses available for use is much less than the theoretical 4 billion possible. This is leading to a worldwide crunch in the availability of addresses, and rationing is in effect, specially in Asia, which came late to the Internet party and has a short allocation (Stanford University has more IPv4 addresses allocated to it than the whole of China).

Internet Protocol version 6, IPv6, quadrupled the size of the address field to 16 bytes, i.e. unlimited for all practical purposes, and made various other improvements. Unfortunately, its authors severely underestimated the complexity of migrating from IPv4 to IPv6, which is why it hasn’t caught on as quickly as it should have, even though the new protocol is almost a decade old now. Asian countries are leading in IPv6 adoption, simply because they don’t have the choice. Many people make do today with Network Address Translation (NAT), where a box (like a DSL router) allows several machines to share a single global IP address, but this is not an ideal solution, and one that only postpones the inevitable (but not imminent) reckoning.

One misconception, however, is that that the slow pace of the migration is somehow related to the fact you get your IP addresses from your ISP, and don’t “own” them or have the option to port them the way you now can with your fixed or mobile phone numbers. While IPv6 greatly increases the number of addresses available for assignment, this will not change the way addresses are allocated, for reasons unrelated to the address space crunch.

First of all, nothing precludes anyone from requesting an IPv4 address directly from the registry in charge of their continent:

• ARIN in North America and Africa south of the Equator
• LACNIC for Latin America and the Caribbean
• RIPE (my former neighbors in Amsterdam) for Europe, Africa north of the Equator, and Central Asia
• APNIC for the rest of Asia and the Pacific.

That said, these registries take the IP address shortage seriously and will require justification to grant the request. Apart from ISPs, the other main kind of allocation recipients are large organizations that require significant numbers of IP addresses (e.g. for a corporate Intranet) and that will use multiple ISPs for their Internet connectivity.

The reason why IP addresses are allocated mostly through ISPs is the stability of the routing protocols used by ISPs to provide global IP connectivity. The Internet is a federation of independent networks that agree to exchange traffic, sometimes for free (peering) or for a fee (transit). Each of these networks is called an “Autonomous System” (AS) and has an AS number (ASN) assigned to it. ASNs are coded in 16 bits, so there are only 65536 available to begin with.

When your IP packets go from your machine to their destination, they will first go through your ISP’s routers to your ISP’s border gateway that connects to other transit or final destination ISPs leading to your destination. There usually are an order of magnitude or two fewer border routers than interior routers. The interior routers do not need much intelligence, all they need to know is how to get their packets to the border. The border routers, on the other hand, need to have a map of the entire Internet. For each block of possible destination IP addresses, they need to know which next-hop ISP to forward the packet on to. Border routers exchange routing information using the Border Gateway Protocol, version 4 (BGP4).

BGP4 is in many ways black magic. Any mistake in BGP configuration can break connectivity or otherwise impair the stability of vast swathes of the Internet. Very few vendors know how to make reliable and stable implementations of BGP4 (Cisco and Juniper are the only two really trusted to get it right), and very few network engineers have real-world experience with BGP4, learned mostly through apprenticeship. BGP4 in the real scary world of the Internet is very different from the safe and stable confines of a Cisco certification lab. The BGP administrators worldwide are a very tightly knit cadre of professionals, who gather in organizations like NANOG and shepherd the Net.

The state of the art in exterior routing protocols like BGP4 has not markedly improved in recent years, and the current state of the art in core router technology just barely keeps up with the fluctuations in BGP. One of the control factors is the total size of BGP routing tables, which has been steadily increasing as the Internet expands (but no longer exponentially, as was the case in the early days). The bigger the routing tables, the more memory has to be added to each and every border router in the planet, and the slower route lookups will be. For this reason, network engineers are rightly paranoid about keeping routing tables small. Their main weapon consists of aggregating blocks of IP addresses that should be forwarded the same way, so they take up only one slot.

Now assume every Internet user on the planet has his own IP address that is completely portable. The size of the routing tables would explode from 200,000 or so today to hundreds of millions. Every time someone logged on to a dialup connection, every core router on the planet would have to be informed, and they would simply collapse under the sheer volume of routing information overhead, and not have the time to forward actual data packets.

This is the reason why IP addresses will continue to be assigned by your ISP: doing it this way allows your ISP to aggregate all its IP addresses in a single block, and send a single route to all its partners. Upstream transit ISPs do even more aggregation, and keep the routing tables to a manageable size. The discipline introduced by the regional registries and ISPs is precisely what changed the exponential trend in routing table growth (one which even Moore’s law would not be able to keep up with) to a linear one.

It’s not as if this requirement is anti-competitive, unlike telcos dragging their feet on number portability – the DNS was precisely created so users would not have to deal with IP addresses, and can easily be changed to point to new addresses in the event of a change of IP addresses.