May 31, 2023

Is Buying IPv4 Address a Good Option?

In the world of technology and the Internet, IPv4 addresses play a crucial role in connecting devices to the Internet. However, with the increasing number of devices and internet users, IPv4 addresses have become a scarce resource. As a result, many companies and individuals are turning to buying IPv4 addresses as a means to ensure uninterrupted internet connectivity for their devices. In this blog post, we will answer a popular question that arises here which is “ Is buying IPv4 addresses a good option or not ?” 

IPv4 Address Exhaustion 

To answer the previously mentioned question, we must first understand the reasons why IPv4 addresses are becoming scarce. The primary reason is the exhaust of the available IPv4 address pool. This means that there are no more new IPv4 addresses that can be assigned to new devices. As the demand for internet connectivity increases with the growing number of devices, the available pool of IPv4 addresses is shrinking rapidly.

This scarcity of IPv4 addresses has resulted in the rise of the IPv4 address market. Companies that hold unused IPv4 addresses are selling them on the market, and individuals and organisations can buy them to ensure they have uninterrupted internet connectivity. 

Is buying IPv4 addresses a good option?

There are certainly some advantages to buying IPv4 addresses which can include:

Guaranteed Connectivity

With an IPv4 address, organisations get guaranteed connectivity on the internet. This means that all the networking equipment can communicate with one another and access the internet, ensuring smooth operations.

Higher Network Reliability

IPv4 addresses guarantee network stability and reliability, even during high-traffic periods. Subsequently, businesses experience faster response times and increased network uptime.

Enhanced Security

Internet connectivity can pose a significant threat to data security, with cyberattacks being a common occurrence. IPv4 addresses offer enhanced security measures that protect businesses from data breaches.

Future-proofing Network Infrastructure

IPv4 address purchase provides an excellent opportunity for organisations to upgrade their network infrastructure. With IPv4 addresses, businesses can ensure their network infrastructure is scalable and up-to-date with the latest technologies.

Investment

IPv4 address purchase is an excellent investment opportunity for organisations. These addresses are scarce, and their demand is increasing exponentially. Investing in IPv4 addresses has proven to be a lucrative investment for businesses as it guarantees future value.

Continuity of Operations

Since IPv4 is the backbone of the modern internet, businesses must have an adequate supply of IPv4 address space for their infrastructure needs. This ensures the continuity of operations and avoids any disruptions due to a shortage of IP addresses.

Cost Savings

By purchasing IPv4 address blocks instead of leasing or renting them, businesses can save a considerable amount of money in the long run. It also allows them to avoid any potential price increases or leasing terms that may negatively impact their operations.

What are the risks of purchasing IPv4 addresses?

Fraudulent Activities 

First and foremost, fraudulent activities are a significant concern when it comes to buying IPv4 addresses. Unscrupulous sellers who lack the proper documentation or legal rights to the address blocks may attempt to sell them in the secondary market, but such transactions can be fraught with risks. The buyer could end up purchasing an address block that has already been allocated to another party, or worse yet, the seller may have obtained the addresses through illegal means.

Also, As the supply of available IPv4 addresses dwindles, there is an increased likelihood of ownership disputes and conflicts arising between buyers, sellers, and other relevant parties. This can result in costly legal battles that can severely impact businesses and individuals alike.

That’s why choosing a reliable IP address broker is very important to avoid falling victim to these fraudulent practices.

Market Fluctuations 

The market value of IPv4 addresses can fluctuate wildly. The cost of allocating these addresses in the primary market is generally higher than the cost in the secondary market, with the result that secondary market transactions can be a volatile proposition. The price volatility coupled with the complexity of the transfer process can lead to significant financial and legal headaches for buyers.

Moreover, buyers must also consider the financial risks associated with purchasing and holding IPv4 addresses, including the costs of ongoing maintenance and regulatory compliance.

Technical Complexities 

Another risk is the complexity of the DNS transfer process itself. For those who are not adequately informed, the transfer of IP addresses can be technically challenging and a source of significant error-prone, if proper procedures are not followed. This can lead to issues where the transferred blocks either do not function correctly or experience significant downtime, making them essentially useless.

How much does an IP address cost?

The cost of an IP address varies depending on several factors, including the type and location of the IP address, the ISP providing the address, and the IP address category. 

IP Address Type 

There are two types of IP addresses: static and dynamic. A static IP address is a fixed IP address assigned to a device that does not change unless manually updated. Dynamic IP addresses are temporary and assigned by the ISP at the time of device connection. Static IP addresses are typically more expensive than dynamic IP addresses since they offer a higher degree of reliability and are preferred for web servers and other heavy-duty applications.

IP Address Location 

The cost of an IP address also varies depending on the location of the IP address. For instance, IP addresses in certain regions or countries may be more expensive than others. This is because of the scarcity of IP addresses in some locations, which leads to high demand, and subsequently, higher costs. Additionally, the cost may be influenced by the specific ISP providing the IP address. Each ISP has its pricing model, and some may charge more than others.

IP Address Category 

The category of the IP address also affects its cost. In general, IP addresses are divided into several categories, such as public, private, and reserved. Public IP addresses are routable, meaning they are visible to other networks, and therefore, more expensive than private IP addresses. Private IP addresses are used within a local network and are not visible to other networks. And reserved IP addresses are reserved for specific purposes, such as for testing or documentation.

In conclusion, buying IPv4 addresses can be a good option in the meantime as long as you are dealing with a reliable and trustworthy IP address broker.