How do switches help reduce network collision domains?

Switches help reduce network collision domains by creating separate collision domains for each device connected to the switch. This is primarily accomplished through the switch's architecture, which operates at the Data Link layer (Layer 2) of the OSI model.

When a device sends data to another device on the same local area network (LAN) through a switch, the switch uniquely identifies each device using MAC addresses and directs traffic specifically to the intended recipient without allowing other devices on the network to 'hear' the transmission. Each port on the switch functions as its own collision domain, meaning that devices connected to different ports of the switch do not interfere with each other's transmissions. This separation effectively eliminates collisions that can occur in traditional hub-based networks where all connected devices share a single collision domain.

This feature enhances network performance and efficiency as it allows for full-duplex communication, where devices can send and receive data simultaneously without collisions. In contrast, other options do not address the fundamental role of a switch in managing collision domains; increasing power, maintaining a single collision domain, or compressing data do not contribute to separating network traffic in this way.