A Layer 3 switch is a high-performance device for network routing. Layer 3 switches actually differ very little from routers. A Layer 3 switch can support the same routing protocols as network routers do. Both inspect incoming packets and make dynamic routing decisions based on the source and destination addresses inside. Both types of boxes share a similar appearance.
Login to rate this answer.
L3 Switches do fast switching compared to router switching functionality.
L3 Switches Modify the packet as the packet is passed.
L3 Switches can switch based on differented services(like More
reliabliability, Less delay)
L3 Switches are placed in core layer.
L3 Switches are made by ASIC's ( Application Specific Integrated Circuits).
L3 Switches understand both MAC as well as IP Address.
where as
L2 Switches do switching based on only MAC Adressing.

2 Users have rated as useful.
Login to rate this answer.
Layer2 switches port to port translation using the MAC address and layer3 switches to do the same using the IP address
Login to rate this answer.
Layer 2 switches can do switching based on mac address only
Layer 3 switches switching as well as routing based on ip address
Login to rate this answer.
L2 Switch, or L2VPN, is forwarding packets based on the MAC. In more depth, if you have 2 switches, switch#1 has been configured for 2 vlans, ports 2,3,4 for vlan111, and ports 5,6,7 for vlan222, and switch#2 has been configured for 2 vlans too, ports 2,3,4,5 for vlan111 and ports 6,7,8 for vlan222.
Now, if you want the users connected to vlan111 on switch#1 to be communicated with users on switch#2 on the same vlan111, then you have to create a trunk port between the two switches. this is if both switches are in the same area...
But, if one of these switches is in some branch, and the other one in another branch, or another city, and the only way is to use the router in between, then the communication method raised to the ip routing layer, or the network layer, or layer3 VPN...
Login to rate this answer.
Hi,
Layer3 switches are installed and consistent to send only interested traffic to allow through the Network.Whereas Layer2 switches act as a interceptor in between layer3 switch and LAN.examples of Layer3 and Layer2 switches are Router and Switch.
Login to rate this answer.