The acronym IPv6 signifies Internet Protocol version 6. It is the most recent version of the Internet Protocol (IP), designed to replace the older version, IPv4. IPv6 was developed to address the issue of IP address exhaustion inherent in IPv4. It provides a vastly larger address space and improved features for routing and network autoconfiguration. IPv6 supports better security measures with built-in IPsec capabilities, enhancing overall network security and functionality as the Internet continues to expand.