These different types of domains mean different things and when designing a LAN both of these domains can harm the performance of your network. If you are not aware of the difference between these two, this tutorial should help you out.
If you have a small network at your home there is usually the router/modem that is connected via phone line or cable to the ISP that router/modem is then connected to a switch or they even have a switch built into the device. You connect a few cables turn on some devices and you now have an internet connection ready to go. In larger networks you have more choices that need to be taken like when to use a hub, a switch, or a router? How much money do you want to spend usually the more money spent you get more ports, performance increases and more features are added. These are all types of components that need to be thought of when designing a LAN.
This tutorial is going to be focusing on two major things collision domains and broadcast domains. The definition of a collision domain is a set of LAN devices whose frames could collide with one another. This happens with hubs, bridges, repeaters and wireless access points as only one device can send and receive at a time. If more than one device tries sending or receiving, the information is lost and irrecoverable it will need to be resent. This can slow down network performance along with making it a security threat.
A hub is considered a layer one device of the OSI model; all it does is send packets out on all ports including the port in which the packet was received on. This causes a collision domain because only one device can transmit at time. This also shares the bandwidth of all devices connected to that collision domain. These devices can inefficiently use that bandwidth because of the CSMA/CD and jamming signals that occur when a collision happens.
A switch uses layer two of the OSI model, so the switch uses MAC addresses to send the packet to the correct device. Rather than sending it to all ports a switch only sends the packet out one port, if it has the MAC address in its MAC address table. If not the switch will send the packet on all ports except for the port in which the packet was received on. Switches provide separate collision domains on each port. This provides dedicated bandwidth to that device. This also allows simultaneous conversations between devices on different ports. Each port can be operated at full-duplex so the device can send and receive information at the same time.
A broadcast domain is like a collision domain, the definition of a broadcast domain is a set of devices that if one device sends a broadcast frame all other devices will receive that frame in the same broadcast domain. So if devices are in the same IP network they will be able to receive a broadcast message. Having a smaller broadcast domain can improve network performance and improve against security attacks. The more PCs and network devices connected to a single broadcast domain, the more broadcast messages you will have. Remember a broadcast message goes to every PC and network device. An example is when the router gets a packet that is destined to a host (192.168.1.124) on its Ethernet interface (192.168.1.0/24 network) the router will send an ARP request saying who is 192.168.1.124? That packet will go to every PC on the network, each PC has to look at the packet and then discard it if it is not 192.168.1.124. But only be processed by the PC that is 192.168.1.124. So a broadcast message can be just like a collision domain and affect network performance. The only devices that can block or not send broadcast messages are routers because they separate networks. Each interface on a router is a different network.
To find more information about collision domains and broadcast domains do a simple web search, you will find a lot of information. You can also go to the Cisco Learning Network to find that and more information about the networking world. I hope this tutorial was helpful.