Description: An overlay network is a computer network that is built on top of another network, creating an additional layer of communication and services. This type of network allows the interconnection of devices and systems that may not be directly connected to the underlying infrastructure. Overlay networks are fundamental in modern network architecture as they facilitate the implementation of services such as VPNs, software-defined networks (SDN), and cloud computing. By operating over an existing network, overlay networks can optimize resource usage, enhance security, and provide flexibility in data and application management. These networks can be used to segment traffic, implement specific security policies, and provide access to distributed resources efficiently. Additionally, they allow the creation of virtualized environments that can scale according to the needs of the user or organization, making them an ideal solution for businesses looking to adapt to a constantly changing technological landscape.