VXLAN (Virtual Extensible LAN) extends layer 2 networks over a layer 3 infrastructure, allowing for the flexible placement of workloads and supporting up to 16 million segments. It utilizes MAC-in-UDP encapsulation and operates with VXLAN Tunnel Endpoints (VTEPs) for encapsulation and decapsulation of packets between layer 2 and layer 3 interfaces. The control plane for VXLAN can be multicast-based or utilize MP-BGP EVPN for more efficient MAC address learning and reduced flooding in the network.