Sockets provide an interface between applications and the network. An application creates a socket which can be either connection-oriented or connectionless. The socket type determines the communication style. Once configured, the application can send and receive data through the socket to communicate over the network. There are two main socket types - SOCK_STREAM for reliable connections and SOCK_DGRAM for unreliable datagrams. Socket addresses contain the IP address and port number to identify the endpoint of communication.