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IPv6 uses 128-bit addresses (e.g., 2001:0db8:85a3::8a2e:0370:7334) providing approximately 3.4×10^38 unique addresses, solving IPv4 exhaustion. IPv4 uses 32-bit addresses (e.g., 192.168.1.1) allowing ~4.3 billion addresses. IPv6 also offers improved security and auto-configuration.