An IP camera is a camera with a network connection
In an analog camera, a video cable runs to a recorder that converts the signal into a picture. An IP camera does that work itself. Inside the camera is a small computer that captures the image, compresses it, and sends it as data over the network. That's the whole difference in a nutshell: the image has become data, and data can go anywhere your network reaches. That has practical consequences. The camera gets its own IP address, just like your laptop or printer. It can receive power and data over the same cable (PoE, more about that later). And it can simultaneously send to multiple locations: to a recorder in the utility box and to the app on your phone. Most IP cameras send two streams at once. A high-quality recording, and a lighter version that you can see in the app when you watch live. That's why live footage on your phone sometimes looks a bit less sharp than the recording you watch later. That's not a malfunction, that's the camera that is missing your mobile connection. Wireless IP cameras also exist. They send the same data stream, only via wifi instead of a cable. Useful where a cable cannot be placed, but you are still dependent on your wifi range and you still need power in that place.
