It stands for TELECOMMUNICATIONS NETWORK. You can remotely control web servers through Telnet. By using Telnet programs you can enter commands. By exchanging data over internet two programs can work cooperatively. With Telnet you can not only control their server but can also communicate with other servers on the network
Telnet is not a protocol it is just a plain text communication between a client and a server. It is usually used to allow a remote user to log on to a server (using port 23) and use a command line (CLI) shell. In the case of Windows the client logs on (using a Windows account on the server) by entering their user name and password into the telnet window. This then allows the client to use the Command Prompt (cmd.exe) on the remote server as if they were physically sat at the server. Its basically the earliest version of Remote Desktop (Remote Desktop is the modern day GUI for logging onto Windows remotely).
By default the Windows telnet server is not enabled on XP but the client works OK. In Vista and 7 the client and server need to be installed separately using the "ControlPanel\Programs and Features > Turn Windows features on or off". Telnet is unencrypted (anyone on the network can see your password) so it is not advised to use it in an insecure environment.
TELNET (TELecommunication NETwork) is a network protocol used on the Internet or local area network (LAN) connections. It was developed to remotely manage computer networks as they began to grow in the early 70s. The people that really new computers were few and far between and couldnt be in multiple places at once. This allowed them to "remote" into routers, switches, and main frames to make changes or fix them.
Telnet is used to establish connection with a remote system. Because of major flaws in security it's not widely used any more.
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Telnet is an application layer protocol (Layer 7). Its functionality is similar to any of the layer 7 protocols, including DHCP, DNS, FTP, etc.
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Telnet is similar to HTTP and FTP in that all three use the TCP protocol for connection-oriented
Telnet does not encrypt anything; that is why it is too insecure to use as a network protocol.
Telnet is a protocol for transferring plain text over TCP .
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TELNET Application layer services like Network Virtual Terminal are used to realise this. TELNET is the protocol used. Refer - Data Communication and Networking by Forouzan