What is the process of encapsulation in data networking?

Encapsulation in data networking refers to the process of wrapping data with protocol information before it is transmitted over a network. This process involves adding headers (and sometimes trailers) to the data at different layers of the OSI model. Each layer of the protocol stack adds its specific header that contains important information, such as source and destination addresses, error-checking codes, and control information needed for the data to be properly routed and interpreted.

This structured approach allows data to be effectively managed and understood by the receiving device, enabling reliable communication across different types of networks and protocols. For instance, in TCP/IP networking, the transport layer wraps the data with TCP or UDP headers, while the Internet layer wraps it with IP headers.

The other options describe different concepts in networking but do not accurately define the encapsulation process. Compressing files does focus on optimizing transfer rates but does not involve adding protocol headers. Splitting data into smaller packets relates more to fragmentation than encapsulation. Converting protocols for compatibility addresses interoperability issues but is not the primary function of encapsulation itself.