Logical Gateway Address
The gateway operates at the network layer (Layer 3) of the OSI Model. The gateway is used when transmitting packets. When packets are sent over a network, the destination IP address is examined. If the destination IP is outside of the network, then the packet goes to the gateway for transmission outside of the network. The gateway is on the same network as end devices. The gateway address must have the same subnet mask as host devices. Each host on the network uses the same gateway.
The gateway should have a static address, as changing the address would cause packets to not be delivered. The gateway is typically assigned either the highest or lowest network address. This is not a requirement, but many organizations use a consistent addressing scheme to facilitate network planning.
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