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.
IPv6
Internet Protocol Version 4 (IPv4) was the first publicly used version of the Internet Protocol. IPv4 was developed as a research project by the Defense Advanced Research Projects Agency (DARPA), a United States Department of Defense agency, before becoming the foundation for the Internet and the World Wide Web. IPv4 includes an addressing system that uses numerical identifiers consisting of 32 bits. These addresses are typically displayed in quad-dotted notation as decimal values of four octets, each in the range 0 to 255, or 8 bits per number. Thus, IPv4 provides an addressing capability of 2 or approximately 4.3 billion addresses. Address exhaustion was not initially a concern in IPv4 as this version was originally presumed to be a test of DARPA's networking concepts. During the first decade of operation of the Internet, it became apparent that methods had to be developed to conserve address space. In the early 1990s, even after the redesign of the addressing system using a classless network model, it became clear that this would not suffice to prevent IPv4 address exhaustion, and that further changes to the Internet infrastructure were needed.