What is an IP Camera and How Do IP Cameras Work?

Ensuring maximum security around your home or property should be a top priority for any business or individual in 2025. Today, most buildings have video security cameras to identify visitors and deter criminality. However, the video surveillance industry is quickly advancing, which we can see in the broad adoption of IP security cameras. So, what is an IP camera, how does it work, and how does it differ from a standard video surveillance camera? This article helps you understand these cameras by listing the different types and models to consider.

What is an IP camera?

So, what are IP cameras? As the name suggests, an IP (Internet Protocol) camera is a smart type of security camera that uses a local area network (LAN) or an internet connection to send digital video signals. Each camera has its own unique IP address, which allows it to be accessed remotely over the network—meaning you can view footage from anywhere.

These cameras transmit signals via Ethernet or Wi-Fi to a Network Video Recorder (NVR), or, in some cases, to cloud storage or onboard storage (like an SD card). Some modern IP cameras also support wireless connectivity via cellular data, offering flexibility in various setups.

How Do IP Cameras Work?

We now already know the IP camera definition. Next, let’s discuss the detailed steps of how these cameras operate. IP cameras work similarly to digital cameras. They can capture high-quality video and convert it into digital data.

However, what sets these cameras apart is the ability to compress the captured and transmit the captured video over an internet network. This enables easy storage and access to the footage, whether on a Network Video Recorder (NVR), cloud storage, or local storage device. Usually, IP cameras connect to a network via Wi-Fi, mobile data, or Ethernet cable.

So, what happens in a building that already has a network? It’s simple; just add your IP camera to the network system. It’s more like connecting your laptop or smartphone to a new Wi-Fi network. No professional skills are required.

What are the types of IP cameras?

Now that we know what an IP camera is, let’s discuss the different systems and how they work. This should help you make a more informed decision.

1. Fixed IP Cameras

As the name suggests, a fixed IP camera operates in a static position. Put simply, these cameras provide a single, unchanging view of a specific area, such as a door or gate. They continuously monitor a pre-set area and can be installed both indoors and outdoors. Think of it as a camera mounted in your living room or an office hallway, offering a consistent view of that space.

2. PTZ (Pan Tilt Zoom) IP Cameras

PTZ IP cameras resemble fixed cameras in most ways, but this option offers greater surveillance capabilities. With a PTZ camera system, a security professional can remotely adjust the camera’s field of view using a remote control. That allows them to monitor larger areas more effectively. Additionally, the "zoom" feature allows the camera to focus in on specific details within the field of view, making it easier to capture clear, close-up images from a distance.

A good example here is the Indoor Cam S350. This IP camera provides remote 360-degree and pan-and-tilt zoom capabilities, providing a complete view without blind spots. It also houses dual 4K UHD cameras for a clear and detailed view of your home.

3. POE/POE+ IP Camera

POE (Power Over Ethernet) IP cameras use a single Ethernet cable to both receive power and transmit video data. Usually, this simplifies installation, as only one cable is needed for both power supply and data transmission, reducing the number of components required. POE cameras are often used with NVRs (Network Video Recorders), which allow for centralized recording and management of video footage. As a result, organizations can streamline their setup process and easily monitor and manage security footage from a single device.

4. Wireless IP Camera

Wireless IP cameras are among the most modern and user-friendly options available. Unlike wired cameras, they don’t require any physical connections to record or transmit footage. Instead, these cameras can use Wi-Fi or mobile data to send video to cloud storage for remote and convenient access. However, their performance relies heavily on the strength and stability of your Wi-Fi signal. This makes them ideal for home and office settings with good network coverage.

An excellent example is the eufy 4G LTE Cam S330. It's a wireless, solar-powered camera that provides 360-degree viewing with AI tracking capabilities. This IP camera includes a 3-in-1 SIM card and automatically switches between mobile data and a Wi-Fi network to provide uninterrupted surveillance.

Key Features of IP Cameras

An IP camera is a critical security device for your home or property. It’s, therefore, vital to ensure that the internet camera ticks the most essential boxes. Below are some critical features to look for:

• Storage: An IP camera can come with either built-in or cloud storage. Most transmit and save videos into the cloud,SSD (Solid State Drive), or HDD (Hard Disk Drive). Choose one that offers ample storage space to store your footage. eufyCam S3 Pro, for example, provides 16GB internal storage and up to 16TB of expandable storage.

• Video Encryption: Consider how secure your footage is before settling on a particular IP camera. Just like any internet device, your IP camera can be a target for hackers. Therefore, choose a camera that uses the latest technology to encrypt your footage during transmission. SSL (Secure Sockets Layer) and TLS (Transport Layer Security) are among the most trusted encryption methods today.

• Type of Connection: An IP camera can beeither wireless or wired. A wireless option like the eufy 4G LTE Cam S330 that can connect to your network via Wi-Fi and cellular data is ideal for remote areas or vacation homes. Wired IP cameras, on the other hand, use an Ethernet cable to provide more stable data transmission, primarily when covering large areas. So, choose what works best for your needs.
• Video Quality: The primary purpose of installing an IP camera is to get a clear view of your property. To achieve this, choose a camera that offers high-resolution video quality. You can consider the Indoor Cam S350 for private usage. It houses a 4K wide-angle lens and a 2K telephoto lens.
• Steady State Streaming: A steady state camera transmits metadata or low-bandwidth video streams to the cloud every few seconds. Such cameras typically use around 20 kbps, which is significantly lower than traditional cloud cameras, which typically stream at 1-2 Mbps. In short, steady-state cameras are more pocket-friendly to run.

Pros and Cons of IP Cameras

IP cameras offer a range of benefits but also come with some drawbacks. Let’s break them down:

Pros of IP Cameras:

• Remote Access: Most IP cameras provide efficient cloud storage. This means security teams can access surveillance footage from almost any internet-connected device.
• High Quality Video: IP cameras generally provide higher video quality than traditional CCTV cameras. Most modern IP cameras record in much higher resolutions, such as 1080p, 4K, or even higher.
• Cutting-Edge Technology: Most modern IP cameras use cutting-edge technologies like edge-based video analytics,AI-driven monitoring, and motion detection to reduce false alarms.
• Good Scalability: Users can easily add more cameras to the network without making major infrastructure changes. This makes system expansion simple and economical.
• System Integration: IP cameras can be seamlessly integrated with other security systems, such as alarm systems and access control systems. This integration gives users a more complete security solution.

Cons of IP Cameras:

• Cybersecurity Risks: Since IP cameras require an internet connection to operate,they are more susceptible to hacking if not properly secured, especially on unsecured networks.
• Higher Long-Term Costs: IP cameras can have higher running costs than analog cameras. You may need to purchase more cloud storage or switch to a higher internet bandwidth for optimal surveillance.
• Complex Operation: Setting up and optimizing an IP camera can bea bit more complicated for non-techiescompared to traditional cameras.

FAQs

Can IP cameras work without internet?

Yes, an IP camera can work without an internet connection despite the widespread belief that it’s 100% web-based. However, it’s important to note that these cameras can only be visible to computers or devices linked to the same Local Area Network (LAN).

Do IP cameras record audio?

Yes, some IP cameras have built-in microphones for two-way communication. An example is the Indoor Cam E220, which provides two-way audio conversations and 2K video streaming.

How do you tell if a camera is an IP camera?

You can identify an IP camera by checking for these signs:

1. Network Connectivity: It connects via Ethernet or Wi-Fi.
2. Standalone Operation: No DVR needed; it uses NVR, cloud storage, or onboard storage.
3. Unique IP Address: It has its own IP address for remote access.
4. High Video Quality: Typically supports 720p resolution or higher.
5. Remote Access: Can be viewed remotely via apps or a browser.
6. Advanced Features: Includes AI-driven features like motion detection.

If it has these characteristics, it's likely an IP camera.

Are IP cameras good?

Yes, IP cameras are considered an upgraded version of analog CCTVs. These cameras provide exceptional video clarity, which could be more than 4K UHD. IP cameras also offer technologies like cloud storage for remote footage access and AI monitoring for efficient identification.

Do IP cameras need a router?

Yes, IP cameras generally need a router to connect to a network. The router allows the camera to transmit video footage to a Network Video Recorder (NVR), cloud storage, or other devices for remote access. However, modern IP cameras like the eufy 4G LTE Cam S330 have built-in SIM support for switching between Wi-Fi and cellular connections.

Conclusion

We hope this article has answered the “How do IP cameras work?” question. These digital CCTVs have revolutionized security surveillance by using the internet to transmit real-time footage with clear images. IP cameras also provide high video resolutions, which may be handy when zooming in on details like human faces and car number plates. It’s time to go digital!