Which two statements about VXLAN are true? (Choose two)

VXLAN is an open industry standard defined in IETF RFC 7348 and is implemented by multiple vendors including VMware, Arista, and Juniper - it is not a Cisco proprietary protocol.

VXLAN (RFC 7348) is an encapsulation method that wraps Layer 2 Ethernet frames inside UDP/IP packets, enabling them to be transported across a Layer 3 routed underlay network as an overlay. This allows Layer 2 segments to be extended across geographically separated data centers or network pods that are connected only by IP routing.

VXLAN provides logical network segmentation through VNIs but does not by itself enforce security isolation - true multi-tenant isolation requires additional policy enforcement mechanisms such as microsegmentation or firewall policies beyond VXLAN encapsulation alone.

VXLAN does not use Spanning Tree Protocol for loop prevention - loop avoidance is handled by the IP underlay routing and VTEP (VXLAN Tunnel Endpoint) logic, which eliminates the need for STP within the overlay.

The IEEE 802.1Q standard supports only 4,096 VLAN IDs due to its 12-bit VLAN tag field, which is insufficient for large-scale multi-tenant cloud environments. VXLAN uses a 24-bit VXLAN Network Identifier (VNI) supporting approximately 16 million unique network segments, directly overcoming this address space limitation.