Layer 2 Switch:
- Works on the data link layer (OSI model).
- It uses a MAC (Media Access Control) address to direct the data flow.
- Suitable for less complex local area networks (LANs).
- It does not have routing capabilities.
- Efficient and cheaper.
- Quick to configure.
- Used to connect multiple devices in the office or home.
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Layer 3 Switch:
- Works on the network layer (OSI model).
- It uses the IP (Internet Protocol) protocol to direct data streams based on IP addresses.
- Able to perform routing functions, connecting between subnets or inter-VLANs in more complex networks.
- A combination between a layer 2 switch and a router.
- Suitable for wide networks with multiple subnets or VLANs.
- Handle multiple data streams efficiently and at high speed.
If you have a small local area network without complex routing needs, Layer 2 Switches will suffice.
If you have a wide network with multiple subnets or VLANs and need routing capabilities, then Layer 3 Switches are a better choice.