Packetization of IP

Data from an upper layer protocol is encapsulated inside one or more packets/datagrams (the terms are basically synonymous in IP). No circuit setup is needed before a host tries to send packets to a host it has previously not communicated with (this is the point of a packet-switched network), thus IP (Internet protocol) is a connectionless protocol. This is quite unlike Public Switched Telephone Networks that require the setup of a circuit before a phone call may go through (a connection-oriented protocol).