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Layer 3 VPN (L3VPN) is a type of VPN mode that is built and delivered on OSI layer 3 networking technologies. The entire communication from the core VPN infrastructure is forwarded using layer 3 virtual routing and forwarding techniques.
Layer 3 VPN is also known as virtual private routed network (VPRN).
Layer 3 VPN typically utilizes border gateway protocol (BGP) to send and receive VPN-related data. L3VPN works by enabling VPN clients to peer with the core router. L3VPN utilizes virtual routing and forwarding (VRF) techniques to create and manage user data.
It is built using a combination of IP- and MPLS-based networking technologies. It is generally used to send data on back-end VPN infrastructures, such as for VPN connections between data centers or back offices.