Ethernet at the Data Link layer is responsible for Ethernet addressing, commonly referred to as hardware addressing or MAC addressing. Ethernet is also responsible for framing packets received from the Network layer and preparing them for transmission on the local network through the Ethernet contention media access method.

Ethernet Addressing

Here’s where we get into how Ethernet addressing works. It uses the Media Access Control (MAC) address burned into each and every Ethernet network interface card (NIC). The MAC, or hardware, address is a 48-bit (6-byte) address written in a hexadecimal format. Below Image shows the 48-bit MAC addresses and how the bits are divided

The organizationally unique identifier (OUI) is assigned by the IEEE to an organization. It’s composed of 24 bits, or 3 bytes. The organization, in turn, assigns a globally administered address (24 bits, or 3 bytes) that is unique (supposedly, again—no guarantees) to each and every adapter it manufactures. Look closely at the figure. The high-order bit is the Individual/ Group (I/G) bit. When it has a value of 0, we can assume that the address is the MAC address of a device and may well appear in the source portion of the MAC header. When it is a 1, we can assume that the address represents either a broadcast or multicast address in Ethernet or a broadcast or functional address in TR and FDDI (who really knows about FDDI?). The next bit is the global/local bit, or just G/L bit (also known as U/L, where U means universal). When set to 0, this bit represents a globally administered address (as by the IEEE). When the bit is a 1, it represents a locally governed and administered address (as in what DECnet used to do). The low-order 24 bits of an Ethernet address represent a locally administered or manufacturer assigned code. This portion commonly starts with 24 0s for the first card made and continues in order until there are 24 1s for the last (16,777,216th) card made. You’ll find that many manufacturers use these same six hex digits as the last six characters of their serial number on the same card.