ADDER AdderLink Infinity 1002 User Manual page 46

In simplified terms, the wrapper that is added at Layer 2
(by the sending system) includes the physical address of
the intended recipient system, i.e. the unique MAC address
(for example, 09:f8:33:d7:66:12) that is assigned to every
networking device at manufacture. Deciphering recipients
at this level is more straightforward than at Layer 3, where
the address of the recipient is represented by a logical IP
address (e.g. 192.168.0.10) and requires greater knowledge
of the surrounding network structure. Due to their more
complex circuitry, Layer 3 switches are more expensive
than Layer 2 switches of a similar build quality and are
used more sparingly within installations.
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