VXLAN Virtual Extensible LAN is an overlay technology designed to expand L2 traffic over L3 networks through encapsulation. Its purpose is to extend VLANs, provide isolation in multi-tenant environments, and support VM migrations. VXLAN supports approximately 16 million virtual segments via 24-bit VNID. It operates over UDP port 4789 and VTEP devices perform encapsulation and decapsulation tasks