Network isolators are installed as part of a wired Ethernet system as galvanic isolators to reduce the potential for electrical injury and limit the extent of damage due to lightning strikes.
Through the applied principle of electromagnetic induction, network data is transmitted across an electrically non-conducting barrier. High frequency AC voltages conveying data are induced across an isolating gap.
The network isolator is a passive device, and functions without any requirement of an external power supply. A functional equivalent to network isolators is Ethernet over a small stretch of optical fibre, using media converters or Ethernet switches/network cards with fiber connections on each end.