Logical Domains uses the virtual network device and virtual network switch device to implement virtual networking. The virtual network (vnet) device emulates an Ethernet device and communicates with other vnet devices in the system by using a point-to-point channel. The virtual switch (vsw) device primarily functions as a multiplexor of all the virtual network's incoming and outgoing packets. The vsw device interfaces directly with a physical network adapter on a service domain, and sends and receives packets on behalf of a virtual network. The vsw device also functions as a simple layer-2 switch and switches packets between the vnet devices connected to it within the system.