The Arduino Ethernet Shield enables an Arduino board to connect to the internet using the Ethernet library and read or write data on an SD card with the SD library.
The shield must be assigned a MAC address and a static IP address using the Ethernet.begin() function. A MAC address is a globally unique identifier for a specific device. Current Ethernet shields have a sticker showing the MAC address to use.
For older shields without a dedicated MAC address, generating a random one should work, but avoid using the same one on multiple boards. Valid IP addresses depend on your network configuration. You can also use DHCP to dynamically assign an IP address. Additionally, you can specify a network gateway and subnet if needed.