Dexterity clients use TCP/IP protocol to communicate with the Dexterity Source Code Control Server, which is running on the machine that contains the source code control repository. The repository machine and each client machine must have valid IP addresses.
If you will be using source code control on a single machine, you must still have a valid IP address set up for your computer. Dexterity still uses TCP/IP protocol to communicate with the source code control repository, even when both are located on the same machine.