Network virtualization allows sharing of physical network infrastructure between multiple virtual networks through abstraction and tunneling techniques. It provides benefits like increased infrastructure utilization, scalability, agility, and security. Common virtualization techniques include VLANs to divide switches into logical segments, DWDM to multiply fiber bandwidth, VRFs to partition routers, and tunneling protocols like GRE, VXLAN, and MPLS to encapsulate and transport traffic across physical networks. Overlay networks further abstract the physical underlay into virtual topologies to support multiple isolated tenant networks on shared infrastructure.