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I have gotten so far that I understand entity objects have an ID while value object have not, but in the most common example you have the person entity that have a address value object attached to it. What is the big advantage of creating a separate address object instead of just keeping the address properties within the Person Entity?
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Value Objects: what is it? An object that represents a descriptive aspect of the domain with no conceptual identity is called a Value Object. Value Objects are instantiated to represent elements of the design that we care about only for what they are, not who or which they are.
Value Object is an object that represents a concept from your problem Domain. It is important in DDD that Value Objects support and enrich Ubiquitous Language of your Domain. They are not just primitives that represent some values - they are domain citizens that model behaviour of your application.
The main difference between entities and value objects lies in the way we compare their instances to each other. The concept of identifier equality refers to entities, whereas the concept of structural equality - to value objects. In other words, entities possess inherent identity while value objects don't.
Ward Cunningham definition Examples of value objects are things like numbers, dates, monies and strings. Usually, they are small objects which are used quite widely. Their identity is based on their state rather than on their object identity. This way, you can have multiple copies of the same conceptual value object...
In addition to the things already mentioned, Greg Young makes a big deal out of the fact that since they are immutable, you can validate them on creation and never worry about validation again. If the state cannot be changed, then you know it's always valid.
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