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Hubs share bandwidth to all ports. This is to say, 16 ports on a single hub will have 10 megabits to share between them. Also, one computer on one port can cause lag for all computers on the same hub.
Switches have a dedicated path to each port. If you had a 16-port 10base-T switch, then each computer on each port would have a full 10 megabits available to it. The uplink port will also have full bandwidth.
Neither switches nor routers need software and can be daisy-chained.
Chaining a number of hubs in series is not a good idea, as the number of computers sharing bandwidth increases as you move from one end of the chain to the other. You would be better off using a central router or switch, and maintaining a star configuration.
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