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whats the purpose of local IP addresses if there are mac addresses? ARP maps mac addresses to IP addresses but I don't see why it's needed, because I thought data on LANs are sent as frames which only care about the mac addresses.
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Long ago and far away, there was more to the world than Ethernet LANs, and application writers didn't care whether your PC was attached to an Ethernet, a Token Ring, an XNS net, or dial-up. IP provides a layer of abstraction and coherence across the top of all those and many more, allowing application authors to ignore the differences between them.
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