A virtual circuit (VC) is a means of transporting data over a packet-switched network in such a way that it appears as though there is a dedicated physical link between the source and destination end systems of this data. The term virtual circuit is synonymous with virtual connection.
Before a connection or virtual circuit may be used, it must be established between two or more nodes or software applications by means of call setup. After that, a bit stream or byte stream may be delivered between the nodes; hence, a virtual circuit protocol allows higher-level protocols to avoid dealing with the division of data into Protocol data units.
Many virtual circuit protocols, but not all, provide reliable communication service through the use of data retransmissions invoked by error detection and automatic repeat request (ARQ).
An alternate network configuration to virtual circuit is datagram.
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