The network and the transport layers rely on addresses that are encoded as fixed size bit strings. A network layer address uniquely identifies a host. Several transport layer entities can use the service of the same network layer. For example, a reliable transport protocol and a connectionless transport protocol can coexist on the same host. In this case, the network layer multiplexes the segments produced by these two protocols. This multiplexing is usually achieved by placing in the network packet header a field that indicates which transport protocol should process the segment. Given that there are few different transport protocols, this field does not need to be long. The port numbers play a similar role in the transport layer since they enable it to multiplex data from several application processes.
While addresses are natural for the network and transport layer entities, humans prefer to use names when interacting with network services. Names can be encoded as a character string and a mapping services allows applications to map a name into the corresponding address. Using names is friendlier for humans, but it also provides a level of indirection which is very useful in many situations.
