stylistic:tone
Shared medium

Ethernet was originally based on the idea of computers communicating over a shared coaxial cable acting as a broadcast transmission medium. The method used was similar to those used in radio systems, with the common cable providing the communication channel likened to the Luminiferous aether in 19th-century physics, and it was from this reference that the name Ethernet was derived.

Original Ethernet's shared coaxial cable (the shared medium) traversed a building or campus to every attached machine. A scheme known as carrier-sense multiple access with collision detection (CSMA/CD) governed the way the computers shared the channel. This scheme was simpler than competing Token Ring or Token Bus technologies. Computers are connected to an Attachment Unit Interface (AUI) transceiver, which is in turn connected to the cable (with thin Ethernet the transceiver is usually integrated into the network adapter). While a simple passive wire is highly reliable for small networks, it is not reliable for large extended networks, where damage to the wire in a single place, or a single bad connector, can make the whole Ethernet segment unusable.

Through the first half of the 1980s, Ethernet's 10BASE5 implementation used a coaxial cable 0.375 inches (9.5 mm) in diameter, later called thick Ethernet or thicknet. Its successor, 10BASE2, called thin Ethernet or thinnet, used the RG-58 coaxial cable. The emphasis was on making installation of the cable easier and less costly.

Since all communication happens on the same wire, any information sent by one computer is received by all, even if that information is intended for just one destination. The network interface card interrupts the CPU only when applicable packets are received: the card ignores information not addressed to it. Use of a single cable also means that the data bandwidth is shared, such that, for example, available data bandwidth to each device is halved when two stations are simultaneously active.

A collision happens when two stations attempt to transmit at the same time. They corrupt transmitted data and require stations to re-transmit. The lost data and re-transmission reduces throughput. In the worst case, where multiple active hosts connected with maximum allowed cable length attempt to transmit many short frames, excessive collisions can reduce throughput dramatically. However, a Xerox report in 1980 studied performance of an existing Ethernet installation under both normal and artificially generated heavy load. The report claimed that 98% throughput on the LAN was observed. This is in contrast with token passing LANs (Token Ring, Token Bus), all of which suffer throughput degradation as each new node comes into the LAN, due to token waits. This report was controversial, as modeling showed that collision-based networks theoretically became unstable under loads as low as 37% of nominal capacity. Many early researchers failed to understand these results. Performance on real networks is significantly better.

In a modern Ethernet, the stations do not all share one channel through a shared cable or a simple repeater hub; instead, each station communicates with a switch, which in turn forwards that traffic to the destination station. In this topology, collisions are only possible if station and switch attempt to communicate with each other at the same time, and collisions are limited to this link. Furthermore, the 10BASE-T standard introduced a full duplex mode of operation which became common with Fast Ethernet and the de facto standard with Gigabit Ethernet. In full duplex, switch and station can send and receive simultaneously, and therefore modern Ethernets are completely collision-free.