RFC 1715:The H Ratio for Address Assignment Effici...
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1. Efficiency of address assignment

   A substantial part of the "IPng" debate was devoted to the choice of
   an address size. A recurring concept was that of "assignment
   efficiency", which most people involved in the discussion expressed
   as a the ratio of the effective number of systems in the network over
   the theoretical maximum. For example, the 32 bits IP addressing plan
   could in theory number over 7 billions of systems; as of today, we
   have about 3.5 millions of addresses reported in the DNS, which would
   translate in an efficiency of 0.05%.

   But this classic evaluation is misleading, as it does not take into
   account the number of hierarchical elements. IP addresses, for
   example, have at least three degrees of hierarchy: network, subnet
   and host.  In order to remove these dependencies, I propose to use a
   logarithmic scale for the efficiency ratio:

                             log (number of objects)
                         H = -----------------------
                                  available bits

   The ratio H is not too dependent of the number of hierarchical
   levels. Suppose for example that we have the choice between two
   levels, encoded on 8 bits each, and one single level, encoded in 16
   bits. We will obtain the same efficiency if we allocate in average
   100 elements at each 8 bits level, or simply 10000 elements in the
   single 16 bits level.

   Note that I use base 10 logs in what follows, because they are easier
   to compute mentally. When it comes to large numbers, people tend to
   use "powers of 10", as in "IPng should be capable of numbering 1 E+15
   systems". It follows from this choice of units that H varies between
   0 and a theoretical maximum of 0.30103 (log base 10 of 2).

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