When data moves between two computers, it starts at the Application layer where user data (for example a message) is created. It passes down the stack through the Presentation layer (which may encrypt or compress it), then through the Session layer to maintain a logical connection. At the Transport layer, the message is broken into segments, and port numbers are added. The Network layer adds source and destination IP addresses, creating packets. The Data Link layer frames the packets and adds MAC addresses for local delivery. Finally, the Physical layer converts frames into electrical or optical signals. The receiver performs decapsulation in the reverse order. This layered approach ensures modular design and interoperability.