As mentioned above, a residential IP is a singular IP address assigned to internet users by their respective internet service providers - unique and verified to that specific user’s ‘home’ and location. You can find your IP address with a quick “what’s my IP search” online.
Residential IP addresses have precise details and information about the user, usually compiled from the user’s previous internet activity by their internet service provider (another reason to use a VPN). Details provided by residential IP addresses ensure better credibility and cloaking than other generic VPNs.
In comparison, a datacenter-based VPN will give a data center IP connected to a cloud service provider, not backed by a local/regional ISP. Therefore, appearing as a legitimate, organic user is more difficult and lowers the trustworthiness from the sites you visit, potentially resulting in blocks.