Here is the original Cloudflare post on what 1.1.1.1 is [1]. For those who don't know, 1.1.1.1 is Cloudflare's privacy focused DNS service. That means that when you type in www.google.com, that URL can be sent to 1.1.1.1, and then 1.1.1.1 resolves that URL an IP address and send the IP back to the user. All user requests are then sent to the IP address, not the URL. Supposedly this is better than using the DNS server…
Regarding privacy, Cloudflare are at least saying they aren't spying on you. Your ISP may not even be saying this. Also, Cloudflare don't necessarily have access to your name and address, whereas your ISP does. Also, many different sites can be hosted on the same IP address, so merely tracking the IP addresses a client is connected to won't necessarily tell you what sites they're visiting.