How do you make a cat5 cable?

Do you need all 8 wires for Ethernet?

Gigabit ethernet (or 10/100/1000 Mbps) gets all its super-charged data power from using all four pairs, or all eight wires, when transferring the full 1000 Mbps of data from one computer to another.

What is the difference between CAT 5 and CAT 6?

The main difference between CAT5e and CAT6 cable lies within the bandwidth, the cable can support for data transfer. CAT6 cables are designed for operating frequencies up to 250 MHz, compared to 100 Mhz for CAT5e. This means that a CAT6 cable can process more data at the same time.