Layer 2 Tunneling Protocol (L2TP), which integrates the advantages of Layer 2 Forwarding (L2F) and Point-to-Point Tunneling Protocol (PPTP), is an industry standard of IETF for tunneling Layer 2 circuits across a packet switched network (PSN). L2TP provides a mechanism for establishing PPP sessions over a non-P2P network. L2TPv3, the third version of L2TP, can transparently transmit Layer 2 traffic between CEs over a PSN.
L2TPv3 enables carriers to provide Ethernet services on public IP networks, allowing enterprises to enjoy services at lower prices. L2TPv3 does not have new requirements for the IP transmission infrastructure and therefore is easy to implement.
L2TPv3 has a flexible identify authentication mechanism and features high security. L2TPv3 can enhance data transmission security by means of channel encryption, E2E data encryption, or application-layer data encryption.