| Proxy Location | Each Pod has an Envoy Sidecar | Node-level ztunnel + optional Waypoint Proxy | 
| Resource Overhead | Consumes CPU/memory in every Pod | Lower, as proxies are shared at node or namespace level | 
| Operational Complexity | Injecting/upgrading Sidecars requires restarting or rolling updates of all Pods | Easier deployment/upgrades, only ztunnel/Waypoint needs updating | 
| Performance | Good isolation per Pod but overall higher overhead | Better L4 performance, L7 requires an additional hop | 
| Feature Completeness | Mature, supports multi-cluster, VM, hybrid networks | Still evolving, some advanced features (multi-network, VM) not fully supported yet | 
| Typical Use Cases | Strict isolation, fine-grained traffic control | Large-scale clusters needing lightweight management |