Nile Service Block
Core Concepts

Nile's layer 3 only network: Transcending VLANS

6min

Introduction

Since the introduction of VLANs (802.1q), networks have become increasingly complex. Cloud adoption, IoT proliferation, and heightened security threats have exposed the limitations of the traditional Layer 2 approach, driving the need for more robust access controls and secure network architectures.

Broadcast domain limitations, complex management overhead, and insufficient security boundaries hindered scalability, agility, and the ability to enforce granular access controls. Using VLANs for segmentation also left networks vulnerable to attacks within shared broadcast domains and introduced complexity in managing segmentation across multiple devices and vendors.

VLANs were primarily invented to mitigate broadcast storms, but their use for security-driven network segmentation was a later development. However, broadcast domain limitations, complex management overhead, and insufficient security boundaries.

This document explores how dynamic, policy-driven Layer 3 segments, a foundational innovation of the Nile Access Service (NaaS), address these challenges. Nile's approach, grounded in zero-trust principles and micro-segmentation, enables organizations to build secure, dynamic, and future-proof networks aligned with modern security best practices and scalability requirements.

Why a Layer 3 only network?

Nile's Layer 3 Network Architecture represents a significant advancement in network design, addressing the limitations of traditional VLAN-based segmentation. By operating entirely at the network layer (Layer 3) of the OSI model, Nile's architecture leverages technologies like overlay networks and routing protocols to create secure, isolated network segments.

Layer 3 segmentation also solves the inherent complexity of managing and securing traditional VLANs, as layer 3 segments are created in the Nile Customer Portal and applied to devices and users wherever they connect.

At the core of Nile's approach is the principle of zero trust, which assumes that no user, device, or application should be implicitly trusted. Instead, granular access controls and continuous authentication and authorization are enforced through a combination of network segmentation, security policies, and identity-based access management.

Key features and benefits of Nile's Layer 3 Network Architecture include:

  1. Segment Assignment: In the Nile Zero Trust environment devices are assigned a segment based on RADIUS authentication, fingerprinting, or manually by an administrator.
  2. Centralized Policy Management: The Nile Access Service denies network access by default and will always send traffic to the corporate firewall/security infrastructure to ensure policies are maintained.
  3. Scalability and Flexibility: Nile's architecture can easily scale to accommodate a large number of segments and can adapt to changing business requirements. New segments can be created, modified, or removed without the need for extensive network reconfiguration or hardware changes.
  4. Campus Zero Trust by default: Unknown devices accessing the network are isolated by default, and directed to the customer's firewall, mitigating any threat of malware entering the domain. By enforcing zero trust principles and micro-segmentation, Nile's architecture significantly enhances network security.
  5. Seamless Integration: Nile's Layer 3 Network Architecture seamlessly integrates with existing network infrastructure and security solutions. It leverages standard routing protocols like OSPF to enable efficient communication between segments and can integrate with leading cloud-based and local security platforms, firewalls, and routing systems.

Layer 3 segmentation in the Nile Service Block operates at the network layer by leveraging OSPF to facilitate communication between segments. Each segment functions as a separate logical network, with upstream security appliances or routers handling inter-segment traffic. The Nile Access Service integrates closely with security vendors like Palo Alto, Fortinet, and Zscaler, ensuring policies are consistently applied to all traffic.

Nile's Layer 3 Network Architecture represents a significant step forward in network design, providing organizations with a scalable, flexible, and secure foundation for building modern, zero-trust networks. By eliminating the complexities associated with traditional VLAN-based segmentation and enabling granular access controls, Nile empowers organizations to protect their critical assets, streamline network management, and adapt to the ever-evolving demands of the digital landscape as we enter this period of AI-powered innovation.

Q. All devices do ARP. How is that handled in a Layer 3-only network?

A. Nile does a proxy ARP for all wired and wireless devices thus avoiding an ARP flood through the network. Let's take an example:

  1. PC1 is 192.168.1.10 and PC2 is 192.168.1.11 and the default gateway is the NSB (192.168.1.1)
  2. PC1 sends an ARP packet
  3. NSB proxy ARPs with its own address 192.168.1.1
  4. PC1 then sends its unicast packet to NSB
  5. NSB either forwards the traffic to the firewall which decides if PC1 is allowed to communicate with PC2 OR if the trust engine is enabled, NSB allows/disallows communication based on policy

Q. How does Nile handle DHCP broadcast packets initiated by end devices?

A. Nile accepts the DHCP broadcast packets from end devices and then acts as an IP helper to forward the packet to the DHCP server. See Nile DHCP Integration for more detail

Q. How does Nile support mDNS services with its Layer 3 architecture?

A. mDNS has two phases:

  1. Discovery Phase - A device is advertising a service (e.g. Printer) and a device looking for a service (e.g. Macbook looking for a printer)
    1. The printer will advertise the service
    2. NSB will learn about the service and maintain an entry
    3. No multicast packets are forwarded to other devices
  2. Connection Phase - The MacBook sends a print command to the printer
    1. When the MacBook requests a service, the NSB sends all the services it is aware of
    2. The MacBook then starts a unicast communication with the printer. These packets are then sent to the firewall or Nile micro-segmentation which decides if the MacBook can communicate with the printer or not

Nile advertises the services across segments. So the printer and MacBook don't need to be on the same subnet. Also, Nile will only advertise services in the vicinity of the MacBook and not across the entire network

Layer 2 vs Layer 3

**Characteristic**

**VLAN (Layer 2)**

**Nile's Layer 3 Architecture**

Scope of Segmentation

Confined to the broadcast domain

Host-based segmentation irrespective of inter-domain or intra-domain

Role of Routing

Requires external routers for inter-VLAN communication

Inherently leverages routing for inter, and intra-segment traffic

Configuration Complexity

Configuration maintenance and control across multiple devices and vendors is highly complex and prone to human error.

Zero Configuration of Nile Service Block required. Part of the network architecture

Security Approach

Limited isolation within shared broadcast domains and susceptibility to physical port vulnerabilities

Zero trust principles with granular access controls and default isolation users and devices

Redundant Connectivity

Implementing redundant links is cumbersome and can lead to loops

OSPF routing enables optimized path selection and redundancy

Broadcast Domain Issues

Prone to broadcast storms and performance degradation in large networks

Nile blocks all broadcast traffic

Connectivity Approach

Often tied to a physical location or switch port

Policy-based connectivity based on user identity, device attributes, and application requirements

The comparison between traditional VLANs and Nile's Layer 3 Network Architecture highlights the significant advancements and benefits of Nile's approach in terms of management simplicity, security, performance, and connectivity. These advantages position Nile's Layer 3 Network Architecture as a powerful enabler of zero-trust security models and a foundation for building modern, agile, and secure networks.