EthernetEthernet is a family of computer networking technologies for local area networks (LANs). Ethernet was commercially introduced in 1980 and standardized in 1985 as IEEE 802.3. Ethernet has largely replaced competing wired LAN technologies.

Ethernet was developed at Xerox PARC between 1973 and 1974. It was inspired by ALOHAnet, which Robert Metcalfe had studied as part of his PhD dissertation. The idea was first documented in a memo that Metcalfe wrote on May 22, 1973, where he named it after the disproven luminiferous ether as an “omnipresent, completely-passive medium for the propagation of electromagnetic waves”. In 1975, Xerox filed a patent application listing Metcalfe, David Boggs, Chuck Thacker and Butler Lampson as inventors. In 1976, after the system was deployed at PARC, Metcalfe and Boggs published a seminal paper.

Metcalfe left Xerox in June 1979 to form 3Com. He convinced Digital Equipment Corporation (DEC), Intel, and Xerox to work together to promote Ethernet as a standard. The so-called “DIX” standard, for “Digital/Intel/Xerox” specified 10 Mbit/s Ethernet, with 48-bit destination and source addresses and a global 16-bit Ethertype-type field. It was published on September 30, 1980 as “The Ethernet, A Local Area Network. Data Link Layer and Physical Layer Specifications”. Version 2 was published in November, 1982 and defines what has become known as Ethernet II. Formal standardization efforts proceeded at the same time.

Ethernet initially competed with two largely proprietary systems, Token Ring and Token Bus. Because Ethernet was able to adapt to market realities and shift to inexpensive and ubiquitous twisted pair wiring, these proprietary protocols soon found themselves competing in a market inundated by Ethernet products and by the end of the 1980s, Ethernet was clearly the dominant network technology. In the process, 3Com became a major company. 3Com shipped its first 10 Mbit/s Ethernet 3C100 transceiver in March 1981, and that year started selling adapters for PDP-11s and VAXes, as well as Multibus-based Intel and Sun Microsystems computers. This was followed quickly by DEC’s Unibus to Ethernet adapter, which DEC sold and used internally to build its own corporate network, which reached over 10,000 nodes by 1986, making it one of the largest computer networks in the world at that time. An Ethernet adapter card for the IBM PC was released in 1982 and by 1985, 3Com had sold 100,000.

Since then Ethernet technology has evolved to meet new bandwidth and market requirements. In addition to computers, Ethernet is now used to interconnect appliances and other personal devices. It is used in industrial applications and is quickly replacing legacy data transmission systems in the world’s telecommunications networks. By 2010, the market for Ethernet equipment amounted to over $16 billion per year.