Circuit switching means that to forward data through a channel two nodes must establish a communication circuit (channel) before these nodes can communicate.
Packet switching is a method of dynamic distribution of resources in network in form of packets - parts of information needed to be forwarded. Using this principle one physical channel can transmit data from many different nodes. There's a difference with the circuit switching: two corresponding nodes may wait for connection if their packets wait unless other packets would be forwarded. This causes critical disadvantage for video and audio as they must forward data in real-time scale, but on the whole packet switching is more effective than the circuit switching.
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