What is the impact of encapsulation on the network?

This describes Network Address Translation (NAT), which maps private IP addresses to public ones, not the general impact of encapsulation.

While encapsulation can hide protocol details, its primary impact is not about concealing "something significant" between networks but rather providing a structured way to add control information at each layer.

This describes the function of a proxy server, which acts as an intermediary for client requests, not the general impact of network encapsulation.

Encapsulation is the process where each layer in the network model (e.g., TCP/IP or OSI) adds its own header and sometimes a footer to the data received from the layer above it, effectively separating concerns and abstracting how lower layers handle data. This modularity allows different layers to evolve independently and simplifies network design.