A method and apparatus that improves the performance of a data network by segmenting the TCP path and implementing a proprietary protocol (DPR™) over a network. Bandwidth is reduced and reliability improved by using an erasure coded algorithm to generate a predicted number of redundant coded packets used to reconstruct lost data packets. Coded packets are generated at the transmission side and the coded packets together with the raw data packets successfully sent over the channel are used to reconstruct lost raw data packets. The DPR™ erasure coding to adjust for packet loss in real time protocol provides a multiplexed tunnel for a multiplicity of TCP sessions from a client to a cloud proxy. DPR™ implements congestion management, flow control, reliability, and link monitoring. Other network protocols (such as UDP) are supported with a reliability protocol based upon network coding that improves the transmission reliability.