Virtual circuit

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A virtual circuit (VC) is a means of transporting data over a data network, based on packet switching and in which a connection is first established across the network between two endpoints. The network, rather than having a fixed data rate reservation per connection as in circuit switching, takes advantage of the statistical multiplexing on its transmission links, an intrinsic feature of packet switching.

A 1978 standardization of virtual circuits by the CCITT imposes per-connection flow controls at all user-to-network and network-to-network interfaces. This permits participation in congestion control and reduces the likelihood of packet loss in a heavily loaded network.^[1][2] Some circuit protocols provide reliable communication service through the use of data retransmissions invoked by error detection and automatic repeat request (ARQ).

Before a virtual circuit may be used, it must be established between network nodes in the call setup phase. Once established, a bit stream or byte stream may be exchanged between the nodes, providing abstraction from low-level division into protocol data units, and enabling higher-level protocols to operate transparently.

An alternative to virtual-circuit networks are datagram networks.