VXLAN (Virtual Extensible LAN) is the correct answer as it uses a 24-bit segment ID, known as VXLAN Network Identifier (VNI), capable of provisioning up to 16 million virtual networks. In contrast, traditional Ethernet-based segmentation methods, such as a standard tagging mechanism, are limited to 4096 unique identifiers. The use of VXLAN enables the creation of a large number of isolated Layer 2 networks that can be stretched across dispersed data centers over a Layer 3 network. GENEVE is a similar encapsulation protocol, but it does not define itself by extending the capabilities of traditional tagging mechanisms. MPLS focuses on optimizing network flows and isn't designed for expanding network segmentation like VXLAN.