Classful addressing divides the address space for IPv4 into five address classes. Each class, coded in the first four bits of the address, defines either a different network size, i.e. number of hosts for unicast addresses (classes A, B, C), or a multicast network (class D). The fifth class (E) address is now IPv6.
Class Leading bits Size of network number bit field Size of rest bit field Number of networks
Class A 0 8 24 128 16,777,216
Class B 10 16 16 16,384 65,536
Class C 110 24 8 2,097,152 256
Class D (multicast) 1110 not defined not defined not defined not defined
Class E (reserved) 1111 not defined not defined not defined not defined
The above approach was fine however the problem was quick exhaust of the IPv4 address which was a precious resources and in 1993 IETF published the new RFCs 1518 and 1519 which describes the new way of allocation of IP address and routing method of the IP packet.
http://tools.ietf.org/html/rfc1518
http://tools.ietf.org/html/rfc1519