When a packet travels through a router, encapsulation occurs as the packet is wrapped in a new header that contains routing information specific to the next hop. During this process, the original packet's header is preserved but may be modified to reflect the new destination. Conversely, during de-encapsulation, the router removes the outer header to process the packet and determines the next hop based on the information in the original header. This process ensures that data is properly routed across different network segments.
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