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The Theory of Docker Overlay Networking

Understand the theory behind Docker overlay networking by learning how VXLAN tunnels create virtual layer 2 networks on top of existing layer 3 infrastructures. This lesson explains key concepts like underlay networks and VXLAN tunnel endpoints to help you grasp how Docker manages container communication transparently across complex network topologies.

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First and foremost, Docker uses VXLAN tunnels to create virtual layer 2 overlay networks. So, let’s do a quick VXLAN primer.

VXLAN primer

At the highest level, Docker uses VXLANs to create layer 2 networks on top of existing layer 3 infrastructure. That’s a lot of jargon. That means you can create simple networks on top of complex networks. The ...