VXLAN Virtual Extensible LAN is an overlay technology designed to extend L2 traffic over L3 networks through encapsulation. It aims to expand VLAN 4096 limits, extend virtual networks, provide isolation in multi-tenant environments, and facilitate VM migration. VXLAN supports approximately 16 million virtual segments through a 24-bit VNID. It operates over UDP port 4789 and VTEP devices perform encapsulation and decapsulation tasks