When you talk about IP networking usually is used OSI Layer model which is divided in 7 OSI Layers:
The specific description for each layer is as follows:
Layer 7:Application Layer
Defines interface to user processes for communication and data transfer in network. Provides standardized services such as virtual terminal, file and job transfer and operations
Layer 6:Presentation Layer
Masks the differences of data formats between dissimilar systems.
Specifies architecture-independent data transfer format. Encodes and decodes data; Encrypts and decrypts data; Compresses and decompresses data
Layer 5:Session Layer
Manages user sessions and dialogues. Controls establishment and termination of logic links between users. Reports upper layer errors
Layer 4:Transport Layer
Manages end-to-end message delivery in network. Provides reliable and sequential packet delivery through error recovery and flow control mechanisms.Provides connectionless oriented packet delivery.
Layer 3:Network Layer
Determines how data are transferred between network devices. Routes packets according to unique network device addresses. Provides flow and congestion control to prevent network resource depletion.
Layer 2:Data Link Layer
Defines procedures for operating the communication links.Frames packets. Detects and corrects packets transmit errors
Layer 1:Physical Layer
Defines physical mean of sending data over network devices. Interfaces between network medium and devices.
Defines optical, electrical and mechanical characteristics.