Ouroboros is a (prototype) distributed system for packet network communications. It consists of a C library that allows you to write ouroboros-native programs and a bunch of daemons that allow you to easily create your own (overlay) networks using ordinary PC hardware (Linux, FreeBSD or MacOS X).
The Ouroboros library implements the application API (the Ouroboros alternative to POSIX sockets) and the management API (the Ouroboros alternative to things like netlink sockets). All end-to-end transport functions are implemented in the application library, such as reliability (packet ordering, retransmission logic etc) and transport encryption.
The Ouroboros daemons can be thought of as software routers that can be connected to each other. Each one has an address, and they forward packets among each other. The daemons also implement a Distributed Hash Table, so the network has its own internal name-to-address resolution.