System and method for implementing and managing virtual networks

A system and method for implementing and management virtual networks is disclosed. A method includes receiving a network packet arriving at a first network interface of a first node of an underlying network, communicating at least the packet and an identifier of the first network interface to a decision engine, determining how the packet should be processed based on a simulation by the decision engine of a traversal of a virtual network topology including a plurality of virtual network devices, wherein the decision engine communicates with a shared database accessible from the underlying network that stores the virtual network topology and virtual device configurations for the plurality of virtual network devices; and processing the packet based upon the simulation.