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A single computer system is referred to as "stand alone". Once you connect two or more computers together, you have formed a network. While networks have traditionally been a need for business, more homes are now equipped with multiple computer systems. These systems can be networked to provide shared Internet connection, easy file sharing and data back up, all running on a single service.
There a many layers to network topology, you can set up a LAN (Local Area Network) to allow communication and file transfers from one computer to another. A hub or a switch is used in this type of setup, without need for any Internet access. If you use a router instead of a hub or switch, then you can also share the Internet connection for all the computers. A router connects to a WAN (wide area network) outside of your LAN, providing NAT (Network Address Translation) allowing the shared connection.
An important consideration in setting up a network is deciding if you want wireless, or cables running from the router to each computer. Wireless is much neater, but more expensive, slower than wired and less secure. Additional steps are needed to secure a wireless network.
Hub
Router
Network Card
Network Cable