Neighbor Sessions and the FSM · Lesson 02 of 02
Loopback peering, multihop and authentication
iBGP peers on loopbacks for resilience; eBGP sometimes needs multihop; both often need a password.
Written lesson
Why iBGP peers on loopbacks
iBGP sessions are usually built between loopback addresses, not physical interfaces, so the session survives the loss of any single link as long as the IGP can still reach the loopback another way. Because the loopback is not the outgoing interface, you must tell BGP which source address to use, and the IGP must carry the loopbacks. eBGP, by contrast, is normally built on the directly connected interface addresses.
Configuration
update-source, multihop and a password
router bgp 65001
neighbor 10.0.0.2 remote-as 65001
neighbor 10.0.0.2 update-source Loopback0
neighbor 203.0.113.9 remote-as 65003
neighbor 203.0.113.9 ebgp-multihop 2
neighbor 203.0.113.9 update-source Loopback0
neighbor 203.0.113.9 password C1sco123Multihop and next-hop
eBGP-multihop changes how the next hop is reached but not the next-hop value itself. Combine loopback eBGP with a route to the peer loopback (static or IGP) or the session will form and then fail to forward traffic.