They are the cheapest way to connect two or more computers together. Hubs are also known as Repeaters and work on the first layer of the OSI model. They are said to work on the first layer because of the function they perform. They don't read the data frames at all (like switches and routers do), they only make sure the frame is repeated out on each port and that's about it.
The Nodes that share an Ethernet or Fast Ethernet LAN using the CSMA/CD rules are said to be in the same collision domain. In plain English, this means that all nodes connected to a hub are part of the same collision domain. In a Collision domain, when a collision occurs everyone in that domain/area will hear it and will be affected. The Ethernet section talks about CSMA/CD and collision domains since they are part of the rules under which Ethernet functions.
The picture below shows a few hubs : 8 port Netgear and a D-link hub.
The computers (nodes)
connect to the hub using Unshielded Twisted Pair cable (UTP). Only one
node can be connected to each port of the hub. The pictured hub has a
total of 8 ports, which means up to 8 computers can be networked.
When hubs were not that common and also expensive, most offices and home networks use to install coax cable.
The way hubs work is quite
simple and straightforward: When a computer on any one of the eight
ports transmits data, this is replicated and sent out to the other seven
ports. Check out the below picture which shows it clearly.
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