The Next_Hop attribute in BGP records the next hop of a route. Similar to the next hop in an IGP, the Next_Hop attribute in BGP must be the IP address of a peer interface.
Unlike IGP, the Next_Hop attribute in BGP does not necessarily have to be the IP address of a peer interface. For example, in multi-hop BGP configurations, the Next_Hop can point to a different router or interface within the network.
HCIP-Datacom-Core Reference
Details of the Next_Hop attribute and its behavior are outlined in BGP path selection principles.
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