encapsulate L2 frames in L3 UDP packets.
L3 networks solves lots of forwarding/routing problems of L2 networks. No STP nor VLANs needed.
well known protocols like OSPF, EIGRP can be used for L3.
VNI tag is 24 bit (16 777 215 VxLANs)
one VxLAN is a group of Virtual Tunnels. VTEPs (Virtual Tunnel Endpoint) acts like switch