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.
Transmission Control Protocol
While IP handles actual delivery of the data, TCP keeps track of 'segments' - the individual units of data transmission that a message is divided into for efficient routing through the network. For example, when an HTML file is sent from a web server, the TCP software layer of that server divides the sequence of file octets into segments and forwards them individually to the IP software layer (Internet Layer). The Internet Layer encapsulates each TCP segment into an IP packet by adding a header that includes (among other data) the destination IP address. When the client program on the destination computer receives them, the TCP layer (Transport Layer) re-assembles the individual segments and ensures they are correctly ordered and error-free as it streams them to an application.