Background
Originally, a 32-bit IPv4 address was logically subdivided into the network number field, the most-significant 8 bits of an address, which specified the particular network a host was attached to, and the local address, also called rest field (the rest of the address), which uniquely identifies a host connected to that network. This format was sufficient at a time when only a few large networks existed, such as the ARPANET which was assigned the network number 10, and before the wide proliferation of local area networks (LANs). As a consequence of this architecture, the address space supported only a low number (254) of independent networks, and it became clear very early on that this would not be enough.
Read more about this topic: Classful Network
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