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A VoIP phone or IP phone uses voice over IP technologies for placing and transmitting telephone calls over an IP network, such as the Internet, instead of the traditional public switched telephone network (PSTN).
Digital IP-based telephone service uses control protocols such as the Session Initiation Protocol (SIP), Skinny Client Control Protocol (SCCP) or various other proprietary protocols.
VoIP phones can be simple software-based softphones or purpose-built hardware devices that appear much like an ordinary telephone or a cordless phone. Traditional PSTN phones are used as VoIP phones with analogue telephone adapters (ATA).
A VoIP phone or application may have many features an analogue phone doesn't support, such as e-mail-like IDs for contacts that may be easier to remember than names or phone numbers, or easy sharing of contact lists among multiple accounts. Generally; the features of VoIP phones follow those of Skype and other PC-based phone services, which have richer feature sets but (because they rely on mainstream operating systems' IP support) latency-related audio problems.