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Layer 2 vs Layer 3 Switches?

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What is a layer 2 Switch - it is essentially a multiport switch that operates using MAC addresses through it's caching table to quickly pass information from one port to port.

A layer 3 switch is hybrid, meaning that it can act as router and a switch, it utilizes IP addresses to do the same as that of a layer 3 switch but through it's caching table.