A computer network can be divided logically in to two networking models:
              Workgroup is a peer-to-peer network while domain is a server-based network. The important differences between the two models are listed below:

1. It is a peer-to-peer networking model.
2. There is no client and no server. All the computers are equal in status.
3. This model is recommended for small networks (up to 10 PCs).
4. There is no centralized administration and each computer is administrated separately.
5. There is only distributed processing.
6. In this model, low-grade OS like 2000/XP professional, win 98 etc. can be used.
7.Workgroup can be given a name like sales, HR, accounts etc.
8. User accounts are created in each PC and are called ‘Local Users’.

1. It is a server-based networking model.
2. There is a centralized dedicated server computer called Domain Controller (DC) which controls all other computers called Clients.
3. This model is recommended for large networks.
4. There is centralized administration and each PC can be administrated and managed from the server.
5. Both centralized and distributed processing of resources happens.
6. In this model, high-grade OS like Win 2000/2003 server on the server end.
7.Domain can also given a name like, etc.
8. User accounts are created only in the server (DC) and are called ‘Domain Users’.

 By default, the name of 'Workgroup' is Workgroup.

 To change Workgroup Name right-click on 'My Computer'  properties > Computer name > Change > Workgroup > Type the name > O.K.
        Restart the PC.
 In a Workgroup network, name of Workgroup in every PC will the same. For example, if in your network, there are 10 computers and the name of Workgroup is Sales. So every computer will have Workgroup name as ‘Sales’. 
Click on ‘My Network Places’ > Entire Network > Microsoft Windows Network > you can see the name ‘sales’ > 
Click on the sales > you can see names of computers present in the Workgroup Sales.
 Click on a computer name to view its shared folders.

             To create a Domain network, you have to first create a Domain Controller (DC) and then client computers are made member of the domain.