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In this example, the default gateway uses the IP address 192.168.4.1, which is resolved into a MAC address with ARP in the usual way. The destination IP address remains 192.168.12.3, but the next-hop MAC address is that of the gateway, rather than of the ultimate destination.
In Internet networking, a private network is a computer network that uses a private address space of IP addresses.These addresses are commonly used for local area networks (LANs) in residential, office, and enterprise environments.
They are used to free IP addresses from a scarce IP address space or to reduce the management of assigning IP and configuration of interfaces. Previously, every link needed to dedicate a / 31 or / 30 subnet using 2 or 4 IP addresses per point-to-point link.