What are two characteristics of VXLAN? (Choose two)

VXLAN uses VXLAN Tunnel Endpoints (VTEPs) to encapsulate Layer 2 Ethernet frames into UDP packets for transmission across the IP underlay network and then decapsulate them upon arrival at the destination VTEP, effectively creating an overlay network.

VXLAN uses a 24-bit VNI (VXLAN Network Identifier), not a 12-bit identifier; a 12-bit identifier is characteristic of traditional VLANs, which offer only 4094 segments.

VXLAN utilizes a 24-bit VXLAN Network Identifier (VNI), which allows for up to 2^24 unique VXLAN segments. This translates to approximately 16 million logical network segments, far exceeding the limit of traditional VLANs.

VXLAN is specifically designed to facilitate host mobility by extending Layer 2 networks across data centers, allowing virtual machines to move across physical hosts without changing their IP addresses.

VXLAN extends Layer 2 overlay networks over a Layer 3 underlay; it does not inherently extend Layer 3 overlay networks, which typically requires a separate routing function or Layer 3 gateway.