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Up to now things seem to have gotten worse, because now we have two IP addresses: one is the original IP packet's target address, the other is the IP of the device to which we should send the packet (the next hop, either the final destination or the router). If x.x.x.x is in the same network, then the destination IP can be reached directly, otherwise the packet needs to be sent to the configured router. When your computer wants to send a packet to some IP address x.x.x.x, then the first check is if the destination address is in the same IP network as the computer itself. IP allows connecting of different local networks and thus forming a corporate network or the global internet. Another protocol for example would be IPX.

IP is a protocol that is used on a layer above ethernet. How do IP addresses and MAC addresses work together? There are special MAC addresses, one for example is ff:ff:ff:ff:ff:ff, which is the broadcast address and addresses every network adapter in the network. If the addresses match, the packet is processed, otherwise it is discarded. If a network adapter is receiving a packet, it is comparing the packet's destination MAC address to the adapter's own MAC address. Packets that are sent on the ethernet are always coming from a MAC address and sent to a MAC address. Network cards each have a unique MAC address. Local means that the network devices are either directly connected through a cable or by WiFi or over a network hub or network switch. MAC addresses are the low level basics that make your local ethernet based network work.