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How does VXLAN enhance network virtualization?

  1. By routing traffic through physical network routers

  2. By creating logical tunnels to encapsulate Ethernet frames

  3. By using only a single organization’s network resources

  4. By eliminating the need for IP addressing

The correct answer is: By creating logical tunnels to encapsulate Ethernet frames

VXLAN, or Virtual Extensible LAN, enhances network virtualization primarily by creating logical tunnels to encapsulate Ethernet frames. This encapsulation allows for the creation of a virtual overlay network that can span across multiple physical networks, thereby facilitating communication between virtual machines or devices that are not on the same local network. The method by which VXLAN accomplishes this is through the encapsulation of Layer 2 Ethernet frames within Layer 4 UDP packets, enabling the transmission of these frames over a Layer 3 network. This capability is crucial in cloud environments and data centers where the need for scalability and flexibility in network architecture becomes vital. With VXLAN, network administrators can create isolated virtual networks (VNIs) in a multi-tenant environment without being limited by the constraints of traditional VLANs, which are restricted by VLAN IDs and broadcast domains. This tunneling mechanism allows for greater segmentation and organization of network traffic, making it easier to manage and maintain complex network environments. By using VXLAN, organizations can effectively increase the scale and efficiency of their virtualization efforts, enabling a more versatile networking approach that can cater to modern application needs.