Bridging and switching

While repeaters could isolate some aspects of Ethernet segments, such as cable breakages, they still forwarded all traffic to all Ethernet devices. This created practical limits on how many machines could communicate on an Ethernet network. Also as the entire network was one collision domain and all hosts had to be able to detect collisions anywhere on the network the number of repeaters between the furthest nodes was limited. Finally segments joined by repeaters had to all operate at the same speed, making phased in upgrades impossible

To alleviate these problems, bridging was created to communicate at the data link layer while isolating the physical layer. With bridging, only well-formed packets are forwarded from one Ethernet segment to another; collisions and packet errors are isolated. Bridges learn where devices are, by watching MAC addresses, and do not forward packets across segments when they know the destination address is not located in that direction.

Prior to discovery of network devices on the different segments, Ethernet bridges and switches work somewhat like Ethernet hubs, passing all traffic between segments. However, as the switch discovers the addresses associated with each port, it only forwards network traffic to the necessary segments improving overall performance. Broadcast traffic is still forwarded to all network segments. Bridges also overcame the limits on total segments between two hosts and allowed the mixing of speeds, both of which became very important with the introduction of Fast Ethernet.

Early bridges examined each packet one by one using software on a CPU, and some of them were significantly slower than hubs (multi-port repeaters) at forwarding traffic, especially when handling many ports at the same time. In 1989 the networking company Kalpana introduced their EtherSwitch, the first Ethernet switch. An Ethernet switch does bridging in hardware, allowing it to forward packets at full wire speed. It is important to remember that the term switch was invented by device manufacturers and does not appear in the 802.3 standard. Functionally, the two terms are interchangeable.

Since packets are typically only delivered to the port they are intended for, traffic on a switched Ethernet is slightly less public than on shared-medium Ethernet. Despite this, switched Ethernet should still be regarded as an insecure network technology, because it is easy to subvert switched Ethernet systems by means such as ARP spoofing and MAC flooding. The bandwidth advantages, the slightly better isolation of devices from each other, the ability to easily mix different speeds of device and the elimination of the chaining limits inherent in non-switched Ethernet have made switched Ethernet the dominant network technology.

When a twisted pair or fiber link segment is used and neither end is connected to a hub, full-duplex Ethernet becomes possible over that segment. In full duplex mode both devices can transmit and receive to/from each other at the same time, and there is no collision domain. This doubles the aggregate bandwidth of the link and is sometimes advertised as double the link speed (e.g. 200 Mbit/s) to account for this. However, this is misleading as performance will only double if traffic patterns are symmetrical (which in reality they rarely are). The elimination of the collision domain also means that all the link's bandwidth can be used and that segment length is not limited by the need for correct collision detection (this is most significant with some of the fiber variants of Ethernet).