This episode breaks down the IPv4 address from its 32-bit structure and dotted decimal notation to classful classification A through E, and public and private IPs per RFC 1918. You learn manual subnetting with CIDR notation, calculate the number of subnets and usable hosts, and then put together a Variable Length Subnet Mask (VLSM) allocation based on the real needs of each department.

In episode 2 you were able to configure Cisco devices. But a router cannot work without the correct IP address. Episode 3 is the heart of all addressing in this series: you will learn to read, divide, and allocate IPv4 addresses efficiently.
This material is often considered intimidating, even though it only requires two things: understanding binary and understanding the formulas. In this episode we discuss IPv4 structure, classful classification, public and private IPs, CIDR subnetting, and close with Variable Length Subnet Mask (VLSM) as used in enterprise labs.
An IPv4 address is a 32-bit binary number divided into four octets, each
octet containing 8 bits. Dotted decimal notation displays it as four numbers
from 0 to 255, for example 192.168.10.1. The number 192 in the first
octet is actually the binary 11000000.
Every IPv4 address consists of two parts: a Network ID that identifies the
network, and a Host ID that identifies a device inside that network. The
boundary between them is determined by the subnet mask. For example: in
192.168.10.0/24, the first three octets are the network, the last octet is
the host, so there are 254 usable hosts.
The older classification divides addresses by the first octet:
Today classful allocation has been replaced by CIDR, but the terminology is
still common, for example "Class C block" for a /24 network.
Public IPs are addresses routed on the Internet, while private IPs (RFC 1918) are only valid inside a local network:
10.0.0.0/8 — the private Class A block.172.16.0.0/12 — the private Class B block.192.168.0.0/16 — the private Class C block.Every lab in this series uses private IPs, exactly like a real office network that uses NAT (episode 16) to reach the Internet.
CIDR notation writes the prefix length after a slash: /24 means the first
24 bits are the network. The larger the prefix number, the smaller the number
of hosts. The usable host formula is 2 to the power of (32 minus prefix)
minus 2 for the network address and broadcast address.
Let's practice with 192.168.10.0/26. The /26 prefix means 6 host
bits, so each subnet has 2 to the power of 6 = 64 addresses and 62 usable
hosts. Run ipcalc on a Linux terminal to check the calculation results:
ipcalc 192.168.10.0/26Network: 192.168.10.0
Netmask: 255.255.255.192
Broadcast: 192.168.10.63
HostMin: 192.168.10.1
HostMax: 192.168.10.62The four subnets that can be created from the /24 block are
192.168.10.0/26, .64/26, .128/26, and .192/26. Each has its own
network and broadcast address. You will perform calculations like this
repeatedly when designing labs in PNETLab.
VLSM allows a single large block to be divided into subnets of different
sizes according to need. For example, a 192.168.10.0/24 block must serve
four departments with different host requirements:
/26 (62 usable hosts)./27 (30 usable hosts)./28 (14 usable hosts)./30.Allocation starts from the largest need to the smallest. Large departments get their block first, then the remaining block is divided again for smaller departments. The result is that not a single address is wasted.
Without VLSM, you would have to divide the /24 block into four identical
/26 subnets, so a department of 10 people would waste 52 addresses. In a
production network with thousands of devices, this kind of waste is
unacceptable. VLSM is the reason OSPF and EIGRP support route calculations
with different prefixes in episodes 10 to 12.
When assembling a lab, decide on the addressing diagram before touching the console. Note the network, the first usable host for the gateway, and the prefix of every link. Here is a simple mapping example you can use:
{
"vlan10-sales": "192.168.10.0/26",
"vlan20-marketing": "192.168.10.64/27",
"vlan30-it": "192.168.10.96/28",
"link-r1-r2": "192.168.10.128/30"
}This mapping will be applied directly to router and switch interfaces in episodes 4 to 6 when VLANs and inter-VLAN routing are built.
Key takeaways:
10/8, 172.16/12, and 192.168/16.In the next episode, episode 4, we move to Layer 2: switching and VLANs — how the MAC address table works, the difference between broadcast domains and collision domains, the VLAN concept for logically isolating broadcasts, and configuring your first VLANs on an IOL switch in PNETLab.