Ethernet is technically a networking standard, a way that computers on a network can communicate to each other. Every computer gets an ethernet address or MAC (Media Access Control) address, normally burnt into the network interface itself to ensure that every computer's address is unique.
There are several different Ethernet interfaces to choose from, but the one that has become dominant is the RJ-45 interface, which allows for four twisted pairs of copper wire to transmit and receive information. On slower Ethernet speeds only two of the twisted pairs are used. The Ethernet interface in every Mac manufactured since about 1998 is of the RJ45 type. Since most other types of computer in the world also use RJ45, you can easily buy networking devices such as hubs, switches and routers to attach your computers together easily.
Use Cat5e or Cat6 UTP cable to get the best reliability, and make sure your switch has at least 10/100BaseT standard compliance for the best speed. For even greater speed 1000BaseTX (gigabit ethernet) switches are common, but are more expensive.