Personal computers and workstations may share data, tools, and programs via a local area network. A switch or series of switches interconnects network devices so that computers and workstations may share data, tools, and programs. Private addressing is used in conjunction with the TCP/IP protocol to establish a local area network. A router connects the local area network to the wider internet.

The amount of data that can be transmitted at any given moment is limited by the number of computers connected, which means that the hardware (such as hubs, network adapters, and Ethernet cables) must be inexpensive and fast (i.e., hubs, network adapters, and Ethernet cables). Due to their small size, LANs (which are privately owned) cannot be used for much beyond an office building, home, hospital, school, etc. To build and maintain a LAN, twisted-pair cables and coaxial cables are typically used. The distance covered is also limited, so noise and error are minimized.

In the early days of LANs, data rates usually ranged from 4 to 16 Mbps. Today, 100 Mbps and 1000 Mbps speeds are more common. Because of the short path between computers in a LAN, the delay is very short. A LAN may be connected with up to thousands of PCs, even if wired connections are the primary means of communication. A LAN may include both wired and wireless connections to provide greater speed and security. A LAN can be more stable and have fewer congestion issues than a typical network. For example, in a single room where several Counter-Strike players are playing (without internet access).