What does Docker's "overlay" network driver do?

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Docker's "overlay" network driver is primarily designed to enable communication between containers running on different Docker hosts. It creates a virtual network that spans multiple Docker hosts, allowing containers on these hosts to communicate with each other seamlessly. This is particularly useful in multi-host setups such as those orchestrated with Docker Swarm or Kubernetes.

Using the overlay driver, developers can set up networks that can connect containers across physically separate machines, allowing them to work together as if they were on the same local network. This facilitates service discovery and simplifies the deployment of microservices architectures where services need to interact with one another regardless of where they are deployed.

The significance of this capability contrasts with other options: facilitating communication within a single host is typically handled by the bridge network driver, while managing isolated environments pertains more to bridge or none networks, and handling stateful services is a function attributed to volumes or other orchestration tools rather than a specific network driver.

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