A real-time Ethernet (RTE) protocol includes start-up frames originated by a master device for network initialization including a preamble, destination address (DA), source address (SA), a type field, and a status field including state information that indicates a current protocol state that the Ethernet network is in for the slave devices to translate for dynamically switching to one of a plurality of provided frame forwarding modes. The start-up frames include device Discovery frames at power up, Parameterization frames that distribute network parameters, and Time Synchronization frames including the master's time and unique assigned communication time slots for each slave device. After the initialization at least one data exchange frame is transmitted exclusive of SA and DA including a preamble that comprises a header that differentiates between master and slave, a type field, a status field excluding the current protocol state, and a data payload.