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The device that connects two or more network segments and regulates traffic is a switch. Switches operate at the data link layer of the OSI model, which allows them to intelligently forward data packets between devices on a network. When a switch receives a data packet, it examines the destination address and determines the best route to send the packet, ensuring that it gets to the right device efficiently.

This capability allows switches to reduce unnecessary traffic on the network by sending data only to the intended recipient rather than broadcasting it to all connected devices, which is what a hub would do. By managing the flow of data intelligently, switches improve the performance and speed of a network. In contrast to routers, which manage traffic between different networks, switches work within a single network to facilitate communication between devices. Thus, a switch is key in creating a well-regulated and efficient networking environment.