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I have a 1Gbit/s LAN. I have connected a multi-speed switch that supports 10 Mbit/s to that LAN. On the other side of the multi-speed switching hub is a Ethernet device that has only 10 Mbit/s.
The multi-speed hub receives the packets at one side into an internal buffer and sends the packet on the other side after the receive is complete and the packet is valid.
I have observed that TCP connections work in both direction without packet loss and TCP re-transmission. Such a TCP traffic sends a bunch of packets with TCP segments before the ACK for the first segment is received.
If the multi-speed hub receives the packets at 1 GBit/s and can only send at a speed of 1 percent, why doesn't it lose packets? I don't think that it can have eternal buffer capacity.
Edit: To make the question more clear... The node that sends IP packets with TCP segments send up to 20 packets in a row without waiting for any TCP-ACK packet from the node at the low-speed side. This is allows by the TCP window size. If the 10 MBit/s link isn't able to transfer the data, where is it (temporary) stored?
You say it doesn't have "eternal buffer capacity" but as your edit makes clear, it would only need to buffer 20 packets, less than 64KB, to avoid packet loss. – David Schwartz – 2019-03-22T21:18:34.003