OSPF Point-to-Point Neighbor States

OSPF goes through several states when forming a neighbor relationship with other routers. First the routers power on and send a hello LSU (Link-State Update). This contains the sending router's RID (Router ID), after the LSU is received the receiving router send a LSU back with it's RID. This is called the Init state. However, after the first router has gotten a reply they both transition into a 2-way state. To finalize the 2-way R1 send R2 a LSU with it's RID and R2 RID to confirm the 2-way relationship.

2-way means the routers are available to exchange the LSDB (Link State Database). This means these routers can now start sending each other database updates. Once the databases are the same the routers will move into a Full state. Meaning both routers LSDB are the same. 

OSPF has designated routers and backup designated routers, however these are not elected on point-to-point links because they are meaningless on such connections.