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Understand network components and terms

Who is this article for?
Account owners or team members that want to understand basic networking concepts and terminology to manage their business network setup.

About network components

A network connects local devices together and allows them to communicate to each other and the internet, and the internet connects this local network to online service providers, such as Square.

Your network is connected to the internet through your Internet Service Provider (ISP). Having a robust and well designed network and a reliable internet connection allows for uninterrupted communication of all of your devices.

Before you begin

Familiarize yourself with your current network setup so you can identify the basic components of your network, such as a modem and router.

Depending on your network setup and its complexity, you may come across more complex needs. We recommend working with a networking professional for any advanced configuration, such as firewall modifications.

Essential network components

Some equipment might have multiple functions. For example, UniFi Express provides an all-in-one router and wireless access point, but you still need a network switch to connect additional devices. Though practical in certain use cases such as food trucks, all-in-one devices are not recommended as they make it hard to isolate network issues.

Modem

Typically provided by your internet provider, and sends and receives signals from your ISP. A modem is connected via Fiber, Cable, DSL (over phone wire), or sometimes cellular connection. 

Router

Sometimes known as a gateway, a router disperses signals to network devices, and is typically connected directly to the modem. 

Network switch

Used to connect devices on a network. A network switch acts as a wired extension point and connects to the router, other switches, and sometimes your wireless access points.

Access points or wireless APs

These are network devices that transmit and receive data over a wireless local area network (WLAN), serving as the interconnection point between the WLAN and a fixed wire network. Access points allow your devices, such as laptops and phones, to wirelessly connect to your network.

Network terms and concepts

Connection types

  • Power over Ethernet (POE): POE uses an Ethernet cable to provide both power and network connectivity with one cable without the need for an additional power line running through walls and ceilings.
  • Local Area Network (LAN): A LAN is a group of connected devices within a localized area that usually share a centralized Internet connection.
  • Wireless local-area network (WLAN): A WLAN is a group of devices that form a network based on radio transmissions rather than wired connections. A Wi-Fi network is a type of WLAN.

Addresses and identification

  • Internet Protocol address (IP address): An IP address is a numerical label, such as 192.0.2.1, that is assigned to a device connected to a network that uses the Internet Protocol for communication. IP addresses allow the network to route the correct information to the correct devices.
  • Media access control address (MAC address): A MAC address is a unique identifier assigned to each device connected to the network. MAC addresses are constant values that don’t change. In comparison, IP addresses are used to uniquely identify a device’s network connection but may change as devices move between WLANs. An IP address alone does not indicate whether a device is connected to a network.
  • Domain name: A domain name is the text that maps to an IP address. Domain names are used every day as the text that a user types into a browser window to reach a particular website. The subdomain is simply a part of a main domain. For example, if a domain offered an online store as part of their website example.com , it might use the subdomain shop.example.com.
  • Firewall: A firewall is a network security system that monitors and controls all network traffic based on security rules. A firewall establishes a barrier between a trusted network and an untrusted network, such as the Internet.

Ethernet hardware

Cat5e and Cat6

This is a specification of Ethernet cables that are used for networking that defines their performance. Cat5e is most commonly used.

Wi-Fi 5, Wi-Fi 6, Wi-Fi 6e, and Wi-Fi

These are versions of the protocol supported by your Wi-Fi network or devices. Newer versions typically provide additional features and performance improvements.

Network segmentation and communication 

Virtual local area network (VLAN)

A VLAN allows you to group your devices to a different virtual network while being physically on the same network. Devices on different VLANs are digitally isolated from each other, as if they were using different physical networks

Subnet

A subnet is a subdivision of your network using the IP Protocol. Networks can be divided into two or more networks and it is called subnetting. VLANs and subnets are commonly used together, to divide or unify groups of devices to control how information travels on your network.

Square POS requires devices to be on the same subnet.

UDP and TCP

TCP (transmission control protocol) and UDP (user datagram protocol) are communication protocols that define how information navigates on networks. The main difference them is that TCP is a connection-based protocol and UDP is connectionless. While TCP is more reliable, it transfers data more slowly. UDP is less reliable but works more quickly.

Hypertext Transfer Protocol (HTTP)

This is a protocol for fetching resources such as HTML documents, and is the foundation of data exchange on the web. HTTPS transmits all data in encrypted form and it’s essential for sensitive data, so that no third parties can intercept the data over networks. HTTPS relies on the Transport Layer Security (TLS) protocol for secure communications over the network.

Note: WPA, WPA2, and WEP are Wi-Fi security standards designed to protect communications via encryption. Using some encryption is always better than none, but WEP is the least secure of these standards and shouldn’t be used.

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