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The crossover cable switches the signals between one end of the cable to the other. This causes the transmit signal on one end to be the receive signal on the other end.
The reason for crossing over is to allow a transmitting system to send signals to a receiving system. Without crossing over the signals a transmit signal would arrive at a transmit signal, which is equivalent to a person talking to another person without ever listening (i.e. it won't work for a conversation).
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