Telnet client software provides the ability to login to a remote Internet host that is running a Telnet server application and then to execute commands from the command line. A Telnet client is referred to as a local host. Telnet server, which uses special software called a daemon, is referred to as a remote host.

To make a connection from a Telnet client, the connection option must be selected. A dialog box typically prompts for a host name and terminal type. The host name is the IP address or DNS name of the remote computer. The terminal type describes the type of terminal emulation that the Telnet client should perform. The Telnet operation uses none of the processing power from the transmitting computer. Instead, it transmits the keystrokes to the remote host and sends the resulting screen output back to the local monitor. All processing and storage take place on the remote computer.

Telnet works at the application layer of the TCP/IP model. Therefore, Telnet works at the top three layers of the OSI model. The application layer deals with commands. The presentation layer handles formatting, usually ASCII. The session layer transmits. In the TCP/IP model, all of these functions are considered to be part of the application layer.

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