Which of the following statements about VXLAN encapsulation is TRUE?

VXLAN (Virtual Extensible LAN) is a network virtualization technology that encapsulates layer-2 Ethernet frames within layer-3 UDP packets. This encapsulation allows for the creation of virtual networks over a physical IP network. The true statement about VXLAN encapsulation is as follows:

Transport Tunnel Identification: An additional IP header is used to identify the transport tunnel. This header includes the source and destination IP addresses that identify the endpoints of the VXLAN tunnel.

Service Tunnel Identification: The VXLAN Network ID (VNI) is used to identify the service tunnel. The VNI is a 24-bit identifier that distinguishes different VXLAN segments.

This encapsulation enables the extension of layer-2 networks across layer-3 boundaries, allowing for scalable and flexible network designs.

ReferencesNokia Border Gateway Protocol Fundamentals, Chapter on Network Virtualization and VXLAN.