Abstract: A physical switch system employing a N:M switch circuit, coupled with a layer 2 switch at one end and with a network interface at the other end, for data network system is disclosed. The N:M switch comprises N number of ports on one side and M number of ports on the other side, wherein N and M are not necessarily the same. Based on the addresses describing each of the ports, the N:M switch is capable of establishing electronic links between the ports on both sides and further disengaging the links therebetween upon detecting the completion of data transmission. The disclosed switch system provides an efficient switching mechanism of rescalabitity and modularity in network switch systems.