Layer 2 VPNs
In a Layer 3 network only, you can configure Layer 2 virtual private network (VPN) under a Layer 2 VPN routing instance type l2vpn.
In a Layer 2 environment, you can use a l2vpn routing instance to transparently carry Layer 2 traffic over an IP/MPLS backbone. Layer 2 traffic is sent to the provider edge (PE) router in Layer 2 format. The PE router encapsulates the frames and transports them over the IP/MPLS backbone to the PE router on the other side of the cloud. The remote PE router removes encapsulation and sends the frames to the receiving site in Layer 2 format.