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I know a broadcast IP address is used to send a packet to all the machines in a subnet. But I can't find any real world example for this usage. Can you provide an example?

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There's lots of reasons. One is a DHCP request, but that's sent to 255.255.255.255 (as opposed to 192.168.1.255 in the case of a 192.168.1.0/24 network). Another example would be if a device is looking for other devices running something. For example, Windows old-school NetBIOS broadcasts on UDP 137 and 138 looking for names. That uses 192.168.1.255 in my example subnet.

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