IPv4 has proven to be a fantastic layer 3 protocol. It is mind boggling how many devices are on the Internet today. The Internet is a much different and more complex environment than what was around 40 years ago, back when IPv4 was first introduced. With that being said, IPv4 does have its drawbacks. One of the problems is addressing space. NAT and PAT was conceived to help out with this problem. However, they are only a band aid. Eventually, we will have to upgrade to IPv6. Another problem with IPv4 is broadcast traffic. In layer 2, switches and bridges divides a network into collision domains. However, routers and gateways can divide a network into broadcast domains. A broadcast domain is an area of a network that confines broadcasts. In an earlier post, I discussed ARP and ARP requests. Every device that shares the same network address can communicate directly with each other. So, in order to find out an IP address of another device, an ARP request is sent. At your house with only a few devices, this is not a problem. However, imagine a bigger office with 500 or more computers. That is a lot of broadcast traffic. In fact, this is why adding a device on an Ethernet degrades the network exponentially. In order to combat this problem, a network can be divided into multiple broadcast domains through subnetting. Subnet (subnetwork) in IPv4 is an area in a network that shares the same network address. Every device in a subnet has the same network address, can communicate with each other directly, and are bound in a broadcast domain.
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