Unlike the similar Xnest, Xephyr supports modern X extensions (even if the host server does not) such as composite, damage, and randr. It uses SHM images and shadow framebuffer updates to provide good performance. It also has a visual debugging mode for observing screen updates.
Xorg's version of Xephyr uses only software rendering for OpenGL, but Feng Haitao has developed a forked version of Xephyr which can do hardware-accelerated rendering if the underlying X server has the capability.
"ANNOUNCE: xorg-server 1.16.0". freedesktop.org. 2014-07-17. https://lists.x.org/archives/xorg-announce/2014-July/002457.html ↩
Larabel, Michael (June 16, 2012). "X.Org 7.8 Will Not Come For A While". Phoronix. Retrieved February 11, 2015. https://www.phoronix.com/scan.php?page=news_item&px=MTEyMTI ↩