Ethernet, a 10 Mbit/sec CSMA/CD network, is one of the most successful LAN technologies. Considerable confusion exists as to the actual capacity of an Ethernet, especially since some theoretical studies have examined operating regimes that are not characteristic of actual networks. Based on measurements of an actual implementation, we show that for a wide class of applications, Ethernet is capable of carrying its nominal bandwidth of useful traffic, and allocates the bandwidth fairly. We discuss how implementations can achieve this performance, describe some problems that have arisen in existing implementations, and suggest ways to avoid future problems.