Point-to-Point Protocol (PPP)

The Point-to-Point Protocol (PPP) is a standard, efficient layer 2 technology designed for connections
between two endpoints. As such, it doesn’t include addressing functionality as Ethernet’s
MAC address does, but it can be augmented to operate in point-to-multipoint installations. The
PPP has effectively replaced SLIP and is commonly found in lower-bandwidth applications,
although it is also used as a ubiquitous protocol for a wide range of higher-bandwidth installations.
One of the most innovative benefits of PPP is its support for multiple upper-layer protocols.
This is accomplished by the use of the Network Control Protocol (NCP), which encapsulates the
upper layers. The Link Control Protocol (LCP) is used to negotiate connections on the WAN data
link, and in PPP, it provides for authentication and compression. Use of PPP permits the binding
of connections, also called multilink PPP.