Which TWO of the following are benefits of using network virtualization with VXLAN? (Choose two.)
VXLAN tunnels Layer 2 over Layer 3.
Why this answer
VXLAN encapsulates Layer 2 frames in UDP packets over IP, allowing Layer 2 segments to be stretched across Layer 3 networks. This enables virtual machine mobility and multi-tenant environments without being constrained by physical network boundaries.
Exam trap
Cisco often tests the misconception that VXLAN eliminates STP or provides native encryption, but VXLAN is an overlay technology that still relies on the underlay network's STP and does not include encryption by default.