Does anonymizing IP addresses also hide it in the database?

Due to regulations in the industry our organization is in, we can’t store user’s personal information. Does masking the IP address by using ip_address_mask_length in the config file also mask it in the database? If so, how are unique visitors determined? I saw an old thread where someone said that IP addresses are hashed, but there was conflicting information in that thread. Thanks!

IP are anonimized in the database (removing the last 1, 2 or 3 bytes). Unique Visitors algorithm uses first party cookies for accurate info, so we don’t need the full IP to get accurate unique visitors.