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From OpenVZ Wiki

There are several approaches of how to virtualize networking for containers. Those are desribed below.

Layer 3 virtualized network interface

This one is employed by OpenVZ's venet. See venet.

Layer 2 virtualized network interface

This one is employed by OpenVZ's veth. See veth.

Layer 3 isolated network (bind filtering)

This one is implemented in Linux-VServer. Basically, when a container calls bind() with INADDR_ANY, kernel actually binds the socket to some specific IP address(es). Some more details (not much) can be found at http://linux-vserver.org/Paper#Network_Separation

See also

• Differences between venet and veth