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The Cisco Nexus 7000 Series 8-Port 10 Gigabit Ethernet Module with XL Option buffers data in virtual output queues before the data flows to the fabric. The data flow is controlled by a central arbiter on the supervisor module, using a credit-based buffer design. This architecture offers a lossless fabric that delivers quality of service (QoS) and fairness across all ports, even during congestion.