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The Theory of Docker Overlay Networking

The Theory of Docker Overlay Networking

Let’s learn the theory of Docker overlay networking.

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 hands-on example in the previous sections created a new 10.0.0.0/24 layer 2 network that abstracted a more complex network topology below. See the figure below and remember that your underlay network configuration was probably different.

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