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Originally posted by My A+ Hardware class notes
Routers operate at the Network layer of the OSI model. They are slower than bridges and switches but make "smart" decisions on how to route packets received on one port to a network on another port.
Routers, like switches, are capable of segmenting the network. Routers are capable of segmenting a network into multiple collision domains as well as into multiple broadcast domains. A broadcast domain is a logical area in a computer network where any computer connected to the computer network can directly transmit to any other in the domain without having to go through a routing device.
More specifically it is an area of the computer network made up of all the computers and networking devices able to be reached by sending a frame to the data link layer. Each port to which a network segment is attached is described as a router interface.
Routers can be computers with special network software installed on them or they can be other devices built by network equipment manufacturers.
Routers contain tables of network addresses along with optimal destination routes to other networks.