Tunneling Protocols

This section covers tunneling protocols that encapsulate network traffic to enable secure or specialized communication across untrusted or incompatible networks. These protocols are widely used in VPNs, broadband services, and network interoperability solutions.

Protocol / Tech

Description

Use Case

L2TP (Layer 2 Tunneling Protocol)

Tunneling protocol often combined with IPsec for encryption. Encapsulates PPP frames for VPNs.

Secure remote VPN access.

PPPoE (Point-to-Point Protocol over Ethernet)

Encapsulates PPP frames within Ethernet frames, enabling ISPs to manage individual subscriber sessions over a shared Ethernet infrastructure. PPPoE supports authentication protocols (PAP, CHAP), IP address assignment, and session management. Widely used for broadband Internet access via DSL lines.

DSL broadband subscriber management

PPP (Point-to-Point Protocol)

A data link protocol that encapsulates network layer packets for transmission over serial links. Supports authentication, compression, and encryption. Common for dial-up and VPN links.

Dial-up and VPN connections

IP-in-IP (IP Encapsulation within IP)

Encapsulates one IP packet inside another IP packet. Used for simple IP tunneling across different network segments.

Site-to-site tunneling, mobile IP, IPv6 transition mechanisms

RFC: RFC 2516

Main Features:

  • Encapsulates PPP frames within Ethernet frames

  • Supports authentication protocols like PAP and CHAP

  • Enables per-user session identification and accounting

  • Operates on standard Ethernet (Layer 2)

  • Provides dynamic IP address assignment

  • Used by ISPs for subscriber session management

Use Cases:

  • DSL broadband subscriber authentication and management

  • Session-based IP address leasing by ISPs

  • Accounting and usage-based billing for residential internet

  • Point-to-point virtual connections over Ethernet infrastructure

Alternative Protocols:

  • IPoE (IP over Ethernet) – A simpler alternative without PPP overhead

  • L2TP – For tunneling PPP over IP networks in broadband aggregation

  • 802.1X + RADIUS – Secure enterprise authentication at Layer 2

  • DHCP + VLANs – For IP provisioning with logical segmentation

RFC: RFC 1661

Main Features:

  • Encapsulates Layer 3 protocols over point-to-point links

  • Supports authentication (PAP, CHAP)

  • Includes error detection and framing

  • Optional compression and encryption

  • Multi-protocol support (e.g., IP, IPX, AppleTalk)

  • Link negotiation and teardown mechanisms

Use Cases:

  • Dial-up modem internet access

  • Point-to-point leased lines (ISDN, serial links)

  • Tunneling PPP over IP networks (e.g., PPP over L2TP)

  • Remote user VPN and secure access

Alternative Protocols:

  • HDLC – Simpler point-to-point encapsulation

  • SLIP – Outdated protocol replaced by PPP

  • L2TP – Encapsulates PPP for tunneling

  • Ethernet – For LAN and broadband access

RFC: RFC 2003

Main Features:

  • Encapsulates a complete IP packet within another IP packet

  • Outer IP header is used for routing over intermediary networks

  • Supports both IPv4-in-IPv4 and IPv6-in-IPv6 encapsulation

  • Minimal overhead and no encryption

  • Used as a basic tunneling mechanism in many systems

Use Cases:

  • Site-to-site tunneling across intermediate IP networks

  • Transport of private IP traffic over a public IP backbone

  • Supporting Mobile IP (mobile node to home agent)

  • IPv6 transition technologies (6in4, ISATAP)

Alternative Protocols:

  • GRE – More flexible tunneling with protocol field and checksum

  • L2TP – Tunneling of PPP across IP

  • IPsec – Adds encryption and authentication to tunneling

  • VXLAN – Overlay network tunneling for data centers