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In a Class E IP address , in the first octet,255 is reserved and used as a local broadcast.What does the term "local" signify here?How does it differ from a directed broadcast?

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Local(255.255.255.255) means that a router will not forward the packet (in some cases like DHCP the router will convert it to a unicast packet and forward it). Directed broadcast addresses have just the host part of the address as all 1s and routers will forward so if I have a subnet 10.10.10.0/24 I can ping from elsewhere in the network 10.10.10.255 and I would get an answer from all hosts. However there are a number of attack that exploit and you can configure your routers to not forward directed broadcasts.

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