Local Area Network (LAN) connects devices placed at a limited distance, covering areas like a room, floor, office, or campus, typically extending up to 1 km. In contrast, Wide Area Network (WAN) connects computers and other LANs/MANs spread across different geographical locations, such as different countries or continents.

LAN offers high data transfer rates, ranging from 10 Mbps to 1000 Mbps (Gigabit Ethernet), and is comparatively secure as only authentic users can access shared resources. WAN facilitates long-distance communication for organizations connecting global branches. The Internet is the largest example of a WAN, whereas a network within a school or college is an example of a LAN.