A collision domain is, as the name implies, the part of a network where packet collisions can occur. A collision occurs when two devices send a packet at the same time on the shared network segment. The packets collide and both devices must send the packets again, which reduces network efficiency. Collisions are often in a hub environment, because each port on a hub is in the same collision domain. By contrast, each port on a bridge, a switch or a router is in a separate collision domain.
The following example illustrates collision domains:
We have 6 collision domains in the example above.
A broadcast domain is the domain in which a broadcast is forwarded. A broadcast domain contains all devices that can reach each other at the data link layer (OSI layer 2) by using broadcast. All ports on a hub or a switch are by default in the same broadcast domain. All ports on a router are in the different broadcast domains and routers don’t forward broadcasts from one broadcast domain to another.
The following example clarifies the concept: