As its name implies, a route distinguisher (RD) distinguishes one set of routes (one VRF) from another. It is a unique number prepended to each route within a VRF to identify it as belonging to that particular VRF or customer. An RD is carried along with a route via MP-BGP when exchanging VPN routes with other PE routers.
https://packetlife.net/blog/2013/jun/10/route-distinguishers-and-route-targets/
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