EVPN is an Ethernet VPN technology that extends layer 2 networks over a layer 3 underlay. It uses BGP as the control plane to distribute MAC addresses and Ethernet segment information between provider edge (PE) devices. EVPN supports various data plane encapsulations like MPLS, VXLAN, and NVGRE. It provides an integrated solution for layer 2 and layer 3 VPNs that addresses scaling challenges in traditional VPLS deployments.