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MPLS Fundamentals by Luc De Ghein - CCIE No. 1897

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Label Distribution with LDP

For every IGP IP prefix in its IP routing table, each LSR creates a local binding—that is, it binds a label to the IPv4 prefix. The LSR then distributes this binding to all its LDP neighbors. These received bindings become remote bindings. The neighbors then store these remote and local bindings in a special table, the label information base (LIB). Each LSR has only one local binding per prefix, at least when the label space is per platform. If the label space is per interface, one local label binding can exist per prefix per interface. Therefore, you can have one label per prefix or one label per prefix per interface, but the LSR gets more than one remote binding because it usually has more than one adjacent LSR. ...

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