Ethernet commonly operates at two speeds, measured in megabits per second (Mbps):

• 10 Mbps, also know as Standard Ethernet or 10BaseT
• 100 Mbps, also known as Fast Ethernet or 100Base T

Gigabit Ethernet is a new, faster Ethernet technology, but not as widely used as Standard and Fast Ethernet. At 1000 Mbps, it's lightning fast, but also more expensive.

Ethernet Equipment

Each computer in an Ethernet network needs a network interface card (NIC) so it can talk to the other devices on the network. Network interface cards are also sometimes called Ethernet cards, network cards, or network adapters. The good news is that most newer computers already have an Ethernet card installed. If not, you need to purchase an Ethernet card for every computer you want to add to the network.

Ethernet cables are used to connect all of the nodes on an Ethernet network. The most common type of cable is called Cat 5 (short for category 5), an unshielded twisted-pair cable. Cat 5 looks like ordinary telephone wire, but with 8 wires inside instead of 4 and a larger wall plug-in called an RJ-45 connector.

All of the devices on an Ethernet network need a common place where they connect. There are three kinds of equipment that do the job:

Hub
A hub is like the hub of a wheel, a central box that all of the devices on the network plug into. A hub allows any two devices on the network to communicate with each other.

Switch
A switch is like a hub, except it not only connects devices, but directs the flow of information between them as well. A switch allows for faster communication when many people are using the network at the same time.

Router
A router is a type of switch that also connects to your DSL/cable modem, allowing many people to access the Internet on different computers at the same time. It acts as a sort of gateway between the Internet and all of the computers on your home network.

There are two main things to consider when you're deciding whether to go with a hub, switch, or router: (1) how many devices you want to network, and (2) if you want to share a single Internet connection. If you want multiple computers to share one broadband Internet connection, then a router is the best choice. Otherwise a hub or switch will work just fine. As a rough rule of thumb, use a switch if you are connecting more than four computers. Less than four, and a hub is okay.

No matter what you choose, pay attention to the number of ports it has, because the number of ports tells you how many devices you can connect to it. For example, a four-port hub can connect four devices.

Typical Ethernet Setup

Ethernet Pros & Cons

Because all of the nodes are connected via cables, Ethernet is the fastest and most stable of the home networking options. But cables can also be a limitation. If your home is not pre-wired for Ethernet and your computers are far apart, running cables between rooms can be unsightly and installing wiring and jacks can get expensive.