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What is Ethernet and
How Does it Work

Editorial Team Editorial Team Mar 18, 2025

Ethernet is the most commonly used method with which to implement local area network (LAN) connectivity among computers and devices. If you connect to the Internet or your local office network with a wired connection, there is a good chance that you are connecting via Ethernet.

This article explains what Ethernet is, how Ethernet works, and its main components. You'll also discover its benefits, high-speed capabilities, drawbacks, and common uses.

Contents:

  1. What is Ethernet?
  2. How Does Ethernet Work?
  3. What is Ethernet Used For?
  4. FAQ

What is Ethernet?

The Ethernet protocol is a trusted technology for setting up local area networks (LANs), making data exchange secure and efficient. Now let’s answer the common question: Is Ethernet LAN? Not exactly. Ethernet is the technology that enables LANs to function. Initially developed by Xerox in the 1970s, Ethernet has advanced from coaxial cables and hubs to modern twisted-pair and fiber optic cabling with smart network switches.

Ethernet is a protocol or cable? It can be both, depending on the context. But generally, Ethernet is a core network protocol that controls how devices communicate. Standardised by the Institute of Electrical and Electronics Engineers (IEEE) under protocol 802.3. It works at the layer 2 data-link level and often pairs with the TCP/IP stack, which operates at layers 3 and 4. Ethernet acts as the communication framework, organizing data into frames, while the IP layer breaks them into smaller packets for efficient delivery.

Pros and Cons of Ethernet


Pros ✔

Affordable: It’s more cost-effective than many other networking options.

Fast & Reliable: It delivers quick and reliable connections.

Secure: Ethernet also supports encryption and firewalls for better protection.

Interference-Resistant: Ethernet maintains steady performance without disruptions.

Compatible: Works seamlessly with older and newer devices.

Cons ✖

Limited Range: It works best for close-distance connections.

Lack of Mobility: Wired setup restricts movement and flexibility.

Interference Issues: LoDoes cables can weaken the connection.

How Does Ethernet Work?

The Ethernet transfers data in frames over wired connections, using MAC addresses to identify devices. It functions at the physical and data link layers of the OSI model, ensuring you get efficient and reliable communication.

  1. Data Transmission: Switches route frames with payloads, MAC addresses, and error-checking (FCS) to the intended device, ensuring you get seamless communication. Full-duplex mode enables simultaneous sending and receiving, eliminating collisions

  2. Speed & Standards: Ethernet supports speeds ranging from 10 Mbps to 100 Gbps, following IEEE 802.3 standards.

  3. Error Detection: The Frame Check Sequence (FCS) maintains data integrity by detecting errors and prompting retransmissions when necessary.

Thanks to its reliability, speed, and scalability, Ethernet continues to be the leading wired networking technology.

Ethernet Components

Ethernet depends on important components that work together to facilitate efficient wired communication. These elements ensure seamless direction, high-speed data transmission, reliability, and connectivity management. Key components include cables, network interface cards (NICs), switches, routers, and frames, each crucial in maintaining data integrity and optimising network performance.

  • Network Interface Cards (NICs): Also known as network adapters, NICs are installed in devices such as printers, computers, and servers to allow them to connect and communicate with the Ethernet network.
  • Ethernet Cables: These cables physically link devices to the network. Common types include:
    • Cat5e and Cat6: Twisted-pair cables commonly used for Gigabit Ethernet connections.
    • Fiber Optic Cables: Used for high-speed data transfer over long distances.
  • Ethernet Ports and Jacks:
    • Ports: Found on devices, these sockets allow Ethernet cables to connect using RJ45 connectors.
    • Jacks: Wall outlets designed for Ethernet connections, often found in offices or structured cabling setups.
  • Switches: Switches connect multiple devices and smartly manage data traffic, sending it only to the intended destination. This reduces collisions and boosts network efficiency.
  • Hubs: Hubs are older devices that connect multiple devices but send data to all of them, making them less efficient than switches.
  • Routers: Routers connect Ethernet LANs to other networks, such as the Internet. They manage tasks like routing data, assigning IP addresses, and ensuring network security.

These standardised components make Ethernet networks mostly "plug-and-play", needing little setup while providing reliable and efficient connectivity.

What is Ethernet Used For?

Due to its popularity and affordability over alternatives like IBM’s Token Ring, Ethernet has evolved to offer higher performance while staying backward compatible. It remains the top choice over wireless solutions in settings that demand fast, stable, and secure data transmission. This includes managing large-scale operations, handling sensitive data, or ensuring uninterrupted connectivity.

Uses Ethernet via USB Network Gate

Ethernet delivers a stable, high-speed network for industrial automation, enabling precise communication between sensors, controllers, and actuators. With USB Network Gate, you can remotely access USB-connected industrial devices, making monitoring and control in manufacturing environments more efficient. Here are some of the most interesting examples we’ve gathered for you.

  • Real-Time Patient Monitoring

    Ethernet provides low-latency and secure connections for real-time patient video monitoring, helping healthcare professionals to respond quickly. USB Network Gate also enables centralised management of connected medical devices, such as monitors and diagnostic tools, improving efficiency in healthcare settings.

  • Seamless USB Passthrough to Cloud Desktops via Ethernet

    Ethernet allows fast and reliable connections for redirecting USB devices to cloud desktops. With USB Network Gate, you and other users can seamlessly access and control USB peripherals like printers and drives remotely.

  • Using USB Devices on a Thin Client via Ethernet

    Thin clients depend on Ethernet for efficient access to server resources. With USB Network Gate, you can remotely use USB devices like keyboards and flash drives over the network, ensuring you experience seamless functionality.

  • Remote Vehicle Diagnostics Using Ethernet Connectivity

    Ethernet lets technicians perform remote vehicle diagnostics by connecting USB tools to the network. With USB Network Gate, these technicians can reliably access diagnostic data, ensuring they get quick and accurate troubleshooting.

FAQ

The Internet is a global network that connects devices globally, enabling access to websites, online services, and communication over long distances. To connect, users need an Internet Service Provider (ISP).

Ethernet, however, is a wired networking technology used to link devices within a local area network (LAN), such as an office or home, for fast and secure communication. While Ethernet often acts as the backbone for Internet access, it doesn’t inherently require an ISP to function.
Ethernet uses physical cables to provide a stable, secure, and fast connection, while Wi-Fi relies on wireless signals. This offers mobility and convenience but with potential speed and security trade-offs.
Yes, Ethernet typically offers faster and more stable speeds than Wi-Fi, especially in high-demand environments like video conferencing, gaming, and large file transfers.
Ethernet networks typically use copper cables, such as fibre optic and twisted pair cables. Twisted pair cables are more cost-effective and ideal for shorter distances, while fibre optic cables provide higher bandwidth and are used for areas with electromagnetic interference or longer distances.
To connect an Ethernet cable, you need to find the Ethernet ports on both devices. Use a Cat5e, Cat6, or Cat6a cable with an RJ-45 connector. Remove any protective caps and check for cable damage. Finally, plug one cable end into each device's Ethernet port to establish the connection.
The maximum distance Ethernet cables support depends on the cable type and Ethernet standard. For twisted pair cables like CAT5e or CAT6, the maximum distance is usually 100 meters (328 feet). However, fibre optic cables can support much longer distances, ranging from a few hundred meters to several kilometres, depending on the fibre type and the equipment used.
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