**Abstract**

Due to continued growth of internet at starling rate and the introduction of new broadband services, such as cloud computing, IPTV and high-definition media streaming, there is a requirement for flexible bandwidth infrastructure that supports mobility of data at peta-scale. Elastic networking based on gridless spectrum technology is evolving as a favorable solution for the flexible optical networking supportive next generation traffic requirements. Recently, research is centered on a more elastic spectrum provision methodology than the traditional ITU-T grid. The main issue is the requirement for a transmission connect, capable of accommodating and handling a variety of signals with distinct modulation format, baud rate and spectral occupancy. Segmented use of the spectrum could lead to the shortage of availableness of sufficiently extensive spectrum spaces for high bitrate channels, resulting in wavelength contention. On-demand space assignment creates not only deviation from the ideal course but also have spectrum fragmentation, which reduces spectrum resource utilization. This chapter reviewed the recent research development of feasible solutions for the efficient transport of heterogeneous traffic by enhancing the flexibility of the optical layer for performing allocation of network resources as well as implementation of optical node by all optical signal processing in optical fiber communication.

**Keywords:** defragmentation, format conversion, grooming, multicasting, optical signal processing, semiconductor optical amplifier, wavelength conversion
