Which two statements are true regarding overlay networks?

Overlay networks are a crucial concept in networking, particularly in scenarios where abstraction and virtualization are required. One of the true statements about overlay networks is that examples of such networks include GRE (Generic Routing Encapsulation), LISP (Locator/Identifier Separation Protocol), and MPLS (Multiprotocol Label Switching). These are specific technologies designed to facilitate the creation of overlay networks, allowing for the encapsulation of traffic and enabling features such as consistent routing, multi-tenancy, and improved scalability.

GRE is a tunneling protocol that encapsulates a wide variety of network protocols, allowing for the creation of secure point-to-point connections. LISP provides a unique way of separating the device identity from its location, enhancing routing efficiency and flexibility. MPLS, on the other hand, encompasses a variety of functionalities including traffic engineering and support for different types of services across both IP and non-IP networks. Their common goal is to provide an intelligent way to manage and route data over the underlying physical infrastructure.

In contrast, the other statements do not hold true. While overlay networks can enhance certain aspects of network performance, they typically rely on the capabilities of the underlay network rather than being inherently faster. The assertion that overlay networks can only support one tenant at a time is incorrect,