Data Encapsulation

As the data flows down the protocol stack the data is encapsulated. It starts at the application layer, where the user information is converted to data. Then the Transport layer converts the data into segments. Then the segments are converted to packets or datagrams at the network layer. The data link layer is next and it converts the packets or datagrams into frames. Finally the physical layer covert the frames into bits (1s and 0s).

This whole process occurs on both computers when they communicate sending data on these 7 layers.