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Ethernet is a communication protocol used for creating LANs. It consists of computers, NICs, Ethernet cables, and a switch/hub. Wireless options also exist. It is an established standard with a solid record spanning more than three decades. The formal designation for standardizing the Ethernet protocol is IEEE 802.3.
Ethernet is a standard communication protocol built into software and hardware devices, intended for creating a local area network (LAN). It was designed by Bob Metcalfe in 1973, and through the efforts of Digital, Intel and Xerox (for whom Metcalfe worked), “DIX” Ethernet has become the standard model for LANs worldwide.
A basic wired LAN consists of the following components:
Two or more computers to be linked together or on a network.
A network interface card (NIC) in each computer.
Ethernet cable for connection to each computer.
A network switch or network hub to direct network traffic.
Network software.
Each computer has a NIC installed and assigned a unique address. An Ethernet cable runs from each NIC to the central switch or hub. The switch or hub will act like a relay (although they have significant differences in how they handle network traffic), receiving and routing data packets across the LAN. This type of networking, therefore, creates a communication system that allows the sharing of data and resources, including printers, faxes and scanners.
These networks can also be wireless. Instead of using a cable to connect computers, wireless NICs use radio waves for two-way communication with a wireless switch or hub. Instead of Ethernet ports, wireless NIC cards, switches, and hubs have a small antenna. Wireless networks can be more flexible to use, but they also require extra care in setting up security.
Alternative technologies include the IBM-designed “Token Ring” protocol and the much newer asynchronous transfer mode (ATM) technology. ATM allows you to connect devices over very large distances to create WANs (wide area networks) that behave like LANs. For an affordable network located in a single building, however, Ethernet is an established standard with a solid record spanning more than three decades of providing reliable network environments.
The formal designation for standardizing the Ethernet protocol is sometimes referred to as IEEE 802.3. The IEEE (Institute of Electrical and Electronics Engineers) proposed a working group in February 1980 — taking into account the designation (19)80 2nd month) — to standardize network protocols. The third subcommittee worked on a model essentially identical to Ethernet, although there are minor variations. Consequently, the generic use of the term could refer to IEEE 802.3 or DIX.