An extranet is a private network that allows controlled access to specific external users, such as business partners, suppliers, or customers. It extends an organization's internal network, enabling secure communication and collaboration while maintaining privacy. Extranets often use the internet to connect users, but they implement security measures like passwords and encryption to protect sensitive information. Organizations use extranets for various purposes, including sharing documents, managing projects, and facilitating online transactions. By providing a platform for real-time communication, extranets enhance efficiency and strengthen relationships with stakeholders, ultimately contributing to better business outcomes.