Communication between two processes would logically consist of
a very long stream of bytes (they called them octets).
The position of any octet in the stream would be used to identify it.
Flow control would be done by using sliding windows and acknowledgments.
The destination could select when to acknowledge and
each acknowledgment returned would be cumulative for all packets received
to that point.
It was left open as to exactly how the source and destination would
agree on the parameters of the windowing to be used. Defaults were
used initially.
Although Ethernet was under development at Xerox PARC at that time,
the proliferation of LANs were not envisioned at the time, much less
PCs and workstations. The original model was national level networks
like ARPANET of which only a relatively small number were expected
to exist. Thus a 32 bit IP address was used of which the first 8 bits
signified the network and the remaining 24 bits designated the host on
that network.
This assumption, that 256 networks would be sufficient
for the foreseeable future, was clearly in need of reconsideration
when LANs began to appear in the late 1970s.
CITS3002 Computer Networks, Lecture 7, The TCP/IP protocol suite, p4, 17th April 2024.