Networks are classified into two categories based on their connection types. They are mentioned below:
Peer-to-peer networks (P2P): When two or more computers are connected together to share resources without the use of a central server is termed as a peer-to-peer network. Computers in this type of network act as both server and client. It is generally used in small companies as they are not expensive.
Server-based networks: In this type of network, a central server is located to store the data, applications, etc of the clients. The server computer provides the security and network administration to the network.