It is based on the Wiznet W5100 Ethernet chip which a network (IP) stack capable of both TCP and UDP. Use the Ethernet library to write sketches which connect to the internet using the add-on module.
The ETHERNET-NANO connects to an Ard Nano using female long wire-wrap headers which extend through the board for the breadboard connections. This keeps the Pin layout intact and allows another add-on module to be stacked on top or bottom.
The Micro-SD card slot can be used to store files for serving over a network. It is compatible with the Ethernet library for the Ard 0022 and later. The SD card library is included in the standard Ard distribution.