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An external IP address is the address assigned to you by your ISP (Internet service provider) that the Internet and other computers outside your local network use to identify you.
In the picture above, there are three computers in the local network with an INTERNAL IP address assigned by the router. The ISP is connected to the router and GIVES the router an external IP address that allows it to communicate with the Internet. While on the Internet, everyone SEES your external IP address, but information COMING from the router is routed from the external IP address to the internal IP address.
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