How Home Networking Works

Once, home networks were primarily the realm of technophiles -- most families either didn't need or couldn't afford more than one computer. But now, in addition to using computers for e-mail, people use them for schoolwork, shopping, instant messaging, downloading music and videos, and playing games. For many families, one computer is no longer enough to go around. In a household with multiple computers, a home network often becomes a necessity rather than a technical toy.

A home network is simply a method of allowing computers to communicate with one another. If you have two or more computers in your home, a network can let them share:

• Files and documents

• An Internet connection

• Printers, print servers and scanners

• Stereos, TVs and game systems

• CD burners

The different network types use different hardware, but they all have the same essential components:

• More than one computer

• Hardware (such as a router) and software (either built in to the operating system or as a separate application) to coordinate the exchange of information

• A path for the information to follow from one computer to another

Building a Home Network

The two most popular home network types are wireless and Ethernet networks. In both of these types, the router does most of the work by directing the traffic between the connected devices. By connecting a router to your dial-up, DSL or cable modem, you can also allow multiple computers to share one connection to the Internet.

If you're going to connect your network to the Internet, you'll need a firewall. A firewall is simply a hardware device or software program that protects your network from malicious users and offensive Web sites, keeping hackers from accessing or destroying your data. Although they're essential for businesses looking to protect large amounts of information, they're just as necessary for someone setting up a home network, since a firewall will secure transactions that might include Social Security numbers, addresses, phone numbers and credit card numbers. Most routers combine wireless and Ethernet technology and also include a hardware firewall.

Many software firewalls installed onto your computer block all incoming information by default and prompt you for permission to allow the information to pass. In this way, a software firewall can learn which types of information you want to allow into your network. Symantec, McAfee and ZoneAlarm are popular companies that produce software-based firewalls. These companies usually offer some free firewall protection as well as advanced security that you can buy.

Reference:
http://www.howstuffworks.com/home-network.htm
http://computer.howstuffworks.com/home-network1.htm