When it comes to networking, Layer 2 (L2) is an essential component of the overall infrastructure. L2 is a layer of the Open Systems Interconnection (OSI) model that provides data link services for network nodes and devices. It defines how data should be formatted, addressed, transmitted and received on a physical medium such as Ethernet or Wi-Fi.

Layer 2 enables communication between different hosts on the same local area network (LAN). Unlike Layer 3 which works at internet protocol level routing packets from one location to another across multiple networks, Layer 2 operates within one LAN segment only allowing nodes connected directly to each other’s media access control address without any need for IP addresses or routers.

Using switches in combination with bridges allows larger networks to be built by connecting multiple LAN segments together into what’s known as virtual local area networks (VLANs). This makes it possible for users in distant locations with no direct connection between them can communicate over long distances using technologies like VPLS or Metro Ethernet circuits which are based upon L2 protocols like MPLS/VPLS tunnels and Frame Relay technology respectively .

Essentially this means that your business has greater flexibility when designing its internal network architecture ensuring that resources can still be accessed quickly regardless of their physical location while also reducing costs associated with running separate dedicated connections across wider areas if needed – all thanks to the power of L2!