How do powerline network adapters work?

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Just plug one in upstairs, plug another in downstairs and wham, simple as that?

What prevents a neighbor from hooking up his own adapter and using my network? Im not really up on wiring or how it works in houses so apologies if its a stupid question :p
 
I've never seen any that haven't had encryption, AFAIK it's a part of the standards.

It is possible to connect to a neighbours network without actually sharing the same circuit. You just need someone on the same phase who's close enough. It's a problem that crops up on this forum from time-to-time.
 
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