8.2 Collision Domains and Broadcast Domains  
  8.2.5 Broadcast domains  
A broadcast domain is a grouping of collision domains that are connected by Layer 2 devices. Breaking up a LAN into multiple collision domains increases the opportunity for each host in the network to gain access to the media. This effectively reduces the chance of collisions and increases available bandwidth for every host. But broadcasts are forwarded by Layer 2 devices and if excessive, can reduce the efficiency of the entire LAN. Broadcasts have to be controlled at Layer 3, as Layer 2 and Layer 1 devices have no way of controlling them. The total size of a broadcast domain can be identified by looking at all of the collision domains that the same broadcast frame is processed by. In other words, all the nodes that are a part of that network segment bounded by a layer three device. Broadcast domains are controlled at Layer 3 because routers do not forward broadcasts.  Routers actually work at Layers 1, 2, and 3. They, like all Layer 1 devices, have a physical connection to, and transmit data onto, the media. They have a Layer 2 encapsulation on all interfaces and perform just like any other Layer 2 device. It is Layer 3 that allows the router to segment broadcast domains.

In order for a packet to be forwarded through a router it must have already been processed by a Layer 2 device and the frame information stripped off. Layer 3 forwarding is based on the destination IP address and not the MAC address. For a packet to be forwarded it must contain an IP address that is outside of the range of addresses assigned to the LAN and the router must have a destination to send the specific packet to in its routing table.
  
   
 

Web Links

How LAN Switches Work

http://www.howstuffworks.com/ lan-switch3.htm