In the beginning of LANs the Layer 1 media was shared between all devices in said LAN. They all received and transmitted on the same wires, at the same time. This is whats known as half-duplex (only send or received, not both). In this configuration devices would sometimes send traffic at the same time, which causes interference on Layer 1. The resulting interference can be enough to disrupt the communications. The shared “area” in which devices are connected to is known as a “collision domain”.