IP Addresses in Action
Both LANs and WANs use IP addresses. This can create problems in some circumstances, such as when a computer needs to send data both to computers in its own network and to computers in other networks. How can this be accomplished?
To make all this work, IP must do three things:
 
  Create some way to use IP addresses so that each LAN has its own identification.
  Interconnect all of the LANs using routers and give those routers some way to use the network identification to send packets to the right network.
  Give each computer on the network some way to recognize if a packet is for the LAN or for a computer on the WAN so it knows how to handle the packet.
Network IDs
To differentiate LANs from one another, ...

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