Packet forwarding in WANs involves breaking messages into packets that are transmitted individually and may follow different routes to the destination. There are two types of packet switching networks: virtual circuit networks which set up dedicated routes for connections, and datagram networks which treat each packet independently. WAN addresses use a hierarchical structure to simplify forwarding, with some bits identifying the packet switch and others identifying the connected computer. Packet switches use routing tables containing next-hop forwarding information to route packets towards their destination based on the address without knowing the complete network topology.