In the ring topology, computers are connected on a single circle of cable. Unlike the bus topology, there are no terminated ends. The signals travel around the loop in one direction and pass through each computer, which acts as a repeater to boost the signal and send it to the next computer. On a larger scale, multiple LANs can be connected to each other in a ring topology by using Thicknet coaxial or fiber-optic cable.
The method by which the data is transmitted around the ring is called token passing. IBM's token ring uses this method. A token is a special series of bits that contains control information. Possession of the token allows a network device to transmit data to the network. Each network has only one token.