VoIP is real-time data or audio transmitted and/or received in a digital format through the application of an Internet Protocol (IP) data packet transmission, or any related or successor protocol transmission. By definition, an IP refers to the method or language by which data is transmitted from one computer system to another via the Internet. Using VoIP, calls may be made between users of the same VoIP service and between the users of VoIP and users of mobile or landline telephone services. While some VoIP services work only with a computer VoIP phone, others permit the use of the conventional telephone with the aid of an adapter. Understanding how VoIP works can be a mystery if you do not understand how the various software and hardware involved work. The following is a blow by blow account to help you understand how VoIP functions.