The computer systems within a Local Area Networks (LAN) are usually separated by a small distance (usually < 100m) therefore high speed and efficient communication is quite possible utilizing a shared broadcast carrier. The price of the carrier is minimal and also the total cost is dominated by the expense of the network interface cards in every computer system. Additionally, the Local Area Networks (LAN) users generally are members of the same team where all users are usually trustworthy, so broadcast doesn’t cause significant security and reliability risk.
Why LANs don’t use networks consisting of multiplexers and switches?
The main reason behind keeping away from a multiplexer and switch approach to LANs is the fact that a central, costly “box” is needed. The production of Application Specific Integrated Circuits (ASICs) has decreased the expense of switching boxes making switch- dependent LANs possible, as well as in a few conditions the prominent method.