The IP address space is split into three predefined classes (A, B, C) with each class fixing the boundary between the network-prefix and the host-number at a different point within the 32bit address
The classful A, B, and C octet boundaries were easy to understand and implement, but they did not foster the efficient allocation of a finite address space
When ICANN assigns a public address prefix to an organization, routes are added to the routers of the Internet so that traffic matching the address prefix can reach the organization
Private organization intranets that do not need an Internet connection can choose any address scheme they want, even using public address prefixes that ICANN has assigned to other networks
If the private organization later decides to directly connect to the Internet, these addresses could conflict with existing public addresses and become illegal addresses