Residential homes typically use a LAN and use a broadband modem to connect to the Internet WAN through an Internet Service Provider (ISP). The ISP provides the modem with a WAN IP address, and all computers on the home network use a LAN IP address (also known as a private IP address).

All computers on a home LAN can communicate directly with each other, but must go through a central network gateway (usually a broadband router) to reach the ISP and beyond.

Other types of local area networks

While LAN and WAN are the most popular network types, you may also see references to these other network types:

Wireless Local Area Network: A local area network based on Wi-Fi wireless network technology.

Metro network: A network that spans a physical area larger than a LAN but smaller than a WAN, such as a city. MANs are usually owned and operated by a single entity, such as a government agency or a large corporation.

Campus Network: A network that spans multiple local area networks but is smaller than a metropolitan area network, such as in a university or local business campus.

Personal Area Network: A network around individuals. Wireless PAN (WPAN) can be created between Bluetooth devices.

Storage Area Network: Connects servers to data storage devices through technologies such as Fibre Channel.

System Area Network (also known as Cluster Area Network, or CAN): Connects high-performance computers with high-speed connections in a cluster configuration.