Network Layer - ISO-OSI 7-Layer Network Architecture

Its basic functions are routing and congestion control.
Routing: This deals with determining how packets will be routed (transferred) from source to destination. It can be of three types :

• Static : Routes are based on static tables that are "wired into" the network and are rarely changed.
• Dynamic : All packets of one application can follow different routes depending upon the topology of the network, the shortest path and the current network load.
• Semi-Dynamic : A route is chosen at the start of each conversation and then all the packets of the application follow the same route. 

Routing

The services provided by the network can be of two types :

• Connection less service: Each packet of an application is treated as an independent entity. On each packet of the application the destination address is provided and the packet is routed.
• Connection oriented service: Here, first a connection is established and then all packets of the application follow the same route. To understand the above concept, we can also draw an analogy from the real life. Connection oriented service is modeled after the telephone system. All voice packets go on the same path after the connection is established till the connection is hung up. It acts like a tube ; the sender pushes the objects in at one end and the receiver takes them out in the same order at the other end. Connection less service is modeled after the postal system. Each letter carries the destination address and is routed independent of all the others. Here, it is possible that the letter sent first is delayed so that the second letter reaches the destination before the first letter.

Congestion Control: A router can be connected to 4-5 networks. If all the networks send packet at the same time with maximum rate possible then the router may not be able to handle all the packets and may drop some/all packets. In this context the dropping of the packets should be minimized and the source whose packet was dropped should be informed. The control of such congestion is also a function of the network layer. Other issues related with this layer are transmitting time, delays, jittering.

Internetworking: Internetworks are multiple networks that are connected in such a way that they act as one large network, connecting multiple office or department networks. Internetworks are connected by networking hardware such as routers, switches, and bridges.Internetworking is a solution born of three networking problems: isolated LANs, duplication of resources, and the lack of a centralized network management system. With connected LANs, companies no longer have to duplicate programs or resources on each network. This in turn gives way to managing the network from one central location instead of trying to manage each separate LAN. We should be able to transmit any packet from one network to any other network even if they follow different protocols or use different addressing modes.

 Inter-Networking

Network Layer does not guarantee that the packet will reach its intended destination. There are no reliability guarantees.