IP filtering is a security measure used to restrict and control access based on the IP addresses of users. In the realm of cryptocurrency, it helps protect networks, wallets, and exchanges from malicious activities.When a user tries to access a service, the system checks their IP address against a list of allowed or blocked addresses. This process can prevent unauthorized users from accessing sensitive information or engaging in fraudulent behaviors. By implementing IP filtering, exchanges and wallets can block known malicious addresses, reducing the risk of hacking and phishing attempts. It also enables organizations to monitor traffic patterns and identify unusual activities that may indicate a security breach.However, while IP filtering can enhance security, it is not foolproof. Some attackers may use techniques like IP spoofing or VPNs to bypass these filters. As such, IP filtering is often part of a broader security strategy that includes other measures such as encryption and two-factor authentication.