Definition of Network Layer in Network Encyclopedia.
What is Network Layer?
Network Layer is the layer 3 of the Open Systems Interconnection (OSI) reference model for networking.
The network layer is responsible for functions such as the following:
- Logical addressing and routing of packets over the network
- Establishing and releasing connections and paths between two nodes on a network
- Transferring data, generating and confirming receipts, and resetting connections

The network layer also supplies connectionless and connection-oriented services to the transport layer above it. The network layer functions closely with the physical layer (layer 1) and data-link layer (layer 2) in most real-world network protocol implementations.
On TCP/IP-based networks, IP addresses and network numbers are used at the network layer, and IP routers perform their routing functions at this layer. An example of an OSI model network layer protocol is the X.25 packet-switching network layer protocol, which is built on the X.21 physical layer protocol.