A local area network (LAN) is a network that connects computers and devices in a limited geographical area such as home, school, computer laboratory, office building, or closely positioned group of buildings. Each computer or device on the network is a node. Current wired LANs are most likely to be based on Ethernet technology, although new standards like ITU-T G.hn also provide a way to create a wired LAN using existing home wires (coaxial cables, phone lines and power lines).
All interconnected devices must understand the network layer (layer 3), because they are handling multiple subnets (the different colors). Those inside the library, which have only 10/100 Mbit/s Ethernet connections to the user device and a Gigabit Ethernet connection to the central router, could be called "layer 3 switches" because they only have Ethernet interfaces and must understand IP. It would be more correct to call them access routers, where the router at the top is a distribution router that connects to the Internet and academic networks' customer access routers.
The defining characteristics of LANs, in contrast to WANs (Wide Area Networks), include their higher data transfer rates, smaller geographic range, and no need for leased telecommunication lines. Current Ethernet or other IEEE 802.3 LAN technologies operate at speeds up to 10 Gbit/s. This is the data transfer rate. IEEE has projects investigating the standardization of 40 and 100 Gbit/s.
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