Classless Inter-Domain Routing
An IP address is interpreted as composed of two parts: a network-identifying prefix followed by a host identifier within that network. In the previous classful network architecture, IP address allocations were based on the bit boundaries of the four octets of an IP address. An address was considered to be the combination of an 8, 16, or 24-bit network prefix along with a 24, 16, or 8-bit host identifier respectively. Thus, the smallest allocation and routing block contained only 256 addresses—too small for most enterprises, and the next larger block contained addresses—too large to be used efficiently even by large organizations. This led to inefficiencies in address use as well as inefficiencies in routing, because it required a large number of allocated class-C networks with individual route announcements, being geographically dispersed with little opportunity for route aggregation.
Internet Protocol
IP addressing entails the assignment of IP addresses and associated parameters to host interfaces. The address space is divided into subnetworks, involving the designation of network prefixes. IP routing is performed by all hosts, as well as routers, whose main function is to transport packets across network boundaries. Routers communicate with one another via specially designed routing protocols, either interior gateway protocols or exterior gateway protocols, as needed for the topology of the network.