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What is a local area network?

What is a local area network? Here are some definitions.

Noun
  1. (computing) An interconnection of computers that are in relatively close proximity to each other, such as within a building.
  2. (computing) A network on which all devices communicate using OSI model device layer addressing.
  3. (Internet) A network on which all communication is delivered by way of MAC addresses and that is not routed.
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