Layer 3 VPN (VPRN)
Layer 3, or VPRN (Virtual Private Routed Network), utilizes layer 3 VRF (VPN/Virtual Routing and Forwarding) to segment routing tables for each “customer” utilizing the service. The customer peers with the service provider router and the two exchange routes, which are placed into a routing table specific to the customer.
Multi-Protocol BGP (MP-BGP) is required in the cloud to utilize the service, which increases complexity of design and implementation. L3 VPNs are typically not deployed on utility networks due to their complexity; however, a L3 VPN could be used to route traffic between corporate or data center locations.