VoIP stands for Voice over Internet Protocol. As the term says VoIP tries to let go voice through IP packets and, in definitive through Internet. What is VoIP?

VoIP stands for Voice over Internet Protocol. As the term says VoIP tries to let go voice (mainly human) through IP packets and, in definitive through Internet. VoIP can use accelerating hardware to achieve this purpose and can also be used in a PC environment.

How does it work?

Many years ago we discovered that sending a signal to a remote destination could have be done also in a digital fashion: before sending it we have to digitalize it with an ADC (analog to digital converter), transmit it, and at the end transform it again in analog format with DAC (digital to analog converter) to use it.

VoIP works like that, digitalizing voice in data packets, sending them and reconverting them in voice at destination.

Digital format can be better controlled: we can compress it, route it, convert it to a new better format, and so on; also we saw that digital signal is more noise tolerant than the analog one (see GSM vs TACS).

TCP/IP networks are made of IP packets containing a header (to control communication) and a payload to transport data: VoIP use it to go across the network and come to destination.

Voice (source)