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In the OSI reference model, each source layer communicates directly with its matching destination layer, creating what's referred to as Peer-to-Peer Communication. The data that is encapsulated in layer X of the source machine, is unencapsulated in layer X on the destination machine.

Sources:
My CIS241 notes
Cisco Networking Academy Program: First-Year Companion Guide, Second Edition published by Cisco Press, page 61

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