USB4 specifies tunneling of:
USB 3.2 ("Enhanced Superspeed") Tunneling
DisplayPort 1.4a -based Tunneling
PCI Express (PCIe)-based Tunneling
Main Benefits of USB 4
The new USB 4 standard has three main benefits over prior versions of USB.
40 Gbps Maximum Speed: By using two-lane cables, devices are able to operate at up to 40 Gbps, the same speed as Thunderbolt 3. The data is transmitted in two sets of four bidirectional lanes.
DisplayPort Alt Mode 2.0: USB 4 supports DisplayPort 2.0 over its alternative mode. DisplayPort 2.0 can support 8K resolution at 60 Hz with HDR10 color. DisplayPort 2.0 can use up to 80 Gbps, which is double the amount available to USB data, because it sends all the data in one direction (to the monitor) and can thus use all eight data lanes at once.
Better Resource Allocation for Video, PCIe: In lieu of alternative mode where the other interface takes over the connection, USB 4 devices can use a process called "protocol tunneling" that sends DisplayPort, PCIe and USB packets at the same time while allocating bandwidth accordingly.
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