Which two statements are correct about an overlay network? (Choose two.)

Which two statements are correct about an overlay network? (Choose two.)
A . The overlay network can only be built using a Layer 3 underlay network.
B . The overlay network provides physical connectivity between devices.
C . The overlay network is built using encapsulation tunnels.
D . The overlay network is the virtual network used to connect multiple virtual machines (VMs).

View Answer

Answer: C, D

Explanation:

An overlay network is a virtual network that is built on top of another network. Nodes in the overlay network are connected by virtual or logical links, each of which corresponds to a path, perhaps through many physical links, in the underlying network45. For example, distributed systems such as peer-to-peer networks and client-server applications often overlay their own network connections over the physical network connections provided by the Internet