Universal vs. local
Addresses can either be universally administered addresses (UAA) or locally administered addresses (LAA). A universally administered address is uniquely assigned to a device by its manufacturer. The first three octets (in transmission order) identify the organization that issued the identifier and are known as the organizationally unique identifier (OUI).[2] The remainder of the address (three octets for EUI-48 or five for EUI-64) are assigned by that organization in nearly any manner they please, subject to the constraint of uniqueness. A locally administered address is assigned to a device by a network administrator, overriding the burned-in address for physical devices.
Universally administered and locally administered addresses are distinguished by setting the second-least-significant bit of the first octet of the address. This bit is also referred to as the U/L bit, short for Universal/Local, which identifies how the address is administered. If the bit is 0, the address is universally administered, which is why this bit is 0 in all OUIs. If it is 1, the address is locally administered. In the example address 06-00-00-00-00-00 the first octet is 06 (hex), the binary form of which is 00000110, where the second-least-significant bit is 1. Therefore, it is a locally administered address.[7] Even though many hypervisors manage dynamic MAC addresses within their own OUI, often it is useful to create an entire unique MAC within the LAA range.[8]