The point-to-point protocol was developed specifically for network connections via serial channels and has asserted itself as the standard for connections between routers. It implements the following functions:
- Password protection according to PAP, CHAP or MS CHAP
- Callback functions
- Negotiation of the network protocol to be used over the connection established (IP or IPX, for example). Included in this are any parameters necessary for these protocols, for example IP addresses. This process is carried out using IPCP (IP Control Protocol).
- Negotiation of the connection parameters, e.g. the MTU (Maximum Transmission Unit, ).
- Verification of the connection through the LCP (Link Control Protocol)
- Combining several ISDN or DSL channels (MultiLink PPP resp. MultiLink PPPoE)
PPP is the standard used by router connections for communication between devices or the WAN connection software of different manufacturers. Connection parameters are negotiated and a common denominator is agreed using standardized control protocols (e.g. LCP, IPCP, CCP) which are contained in PPP, in order to ensure successful data transfer where possible.