If you are wanting replies to be 'simple' then you are probably getting a bit too much in depth when talking about the OSI Model.
Ethernet works on the TCP/IP (Transmission Control Protocol/Internet Protocol) protocol.
I will not bother to repeat what other people have already written down on the Internet therefore I will just point you to a website. You can find an overview of TCP/IP, the versions of IP addressing, and more at click here
Another protocol is NetBEUI which is the NetBIOS Extended User Interface. This is the network transport protocol used by all of Microsoft's network systems and IBM's LAN Server based systems.
Noteworthy is that Novell developed their own protocol named IPX and is used by their NetWare operating systems.
As with Lozzy, is there anything more specific that you would like to find out about?
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