Direct route

If two computers on the same physical network need to communicate, the packets do not require a router. The computers are considered to be on the same local network. In an IEEE 802.3/ethernet TCP/IP network, the sending entity encapsulates the packet in an ethernet frame, binds the destination Internet address to an ethernet address, and transmits the resulting frame directly to its destination. This process is referred to as direct routing. The Address Resolution Protocol (ARP) is an example of a direct routing protocol.
The destination system is on the same physical network if the network portions of the source and destination addresses are the same.

Indirect routing
If two computers that are not on the same physical network need to communicate, they must send the IP packet to a router for delivery. They are located on remote networks. Whenever a router is involved in communication, the activity is considered indirect routing.

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