Here's an excerpt from RFC4364 stating the following:
"When a PE router distributes a VPN-IPv4 route via BGP, it uses its
own address as the "BGP next hop". This address is encoded as a
VPN-IPv4 address with an RD of 0. ([BGP-MP] requires that the next
hop address be in the same address family as the Network Layer
Reachability Information (NLRI).)"
[BGP-MP] Bates, T., Rekhter, Y., Chandra, R., and D. Katz,
"Multiprotocol Extensions for BGP-4", RFC 2858,
Harold Ritter Sr. Technical Leader CCIE 4168 (R&S, SP) firstname.lastname@example.org México móvil: +52 1 55 8312 4915 Cisco México Paseo de la Reforma 222 Piso 19 Cuauhtémoc, Juárez Ciudad de México, 06600 México
Thanks for replying - I missed this bit in the RFC. Nonetheless, the question still remains as to why we need RD in the Next-Hop field? What purpose does it solve?
Or, to put in other words, what other applications set this RD value and use it to some effect? As far as I know, in BGP VPLS NLRI, does not include RD value as per RFC4761.
From RFC4761, section 3.3-
"The Network Layer protocol associated with the Network Address of the Next Hop for the combination SAFI> is IP; this association is required by , Section 5. If the value of the Length of the Next Hop field is 4, then the Next Hop contains an IPv4 address. If this value is 16, then the Next Hop contains an IPv6 address."
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