Point-to-Point Link-Based Systems: Definition & Uses – Video & Lesson Transcript | Study.com
Point-to-Point Protocol
The Point-to-Point Protocol (PPP) denotes a group of networking protocols, which imply a standard method for transporting multi-protocol information over the point-to-point links.
There are three major components of Point-to-Point Protocol:
- A multi-protocol datagram encapsulation method
- A link control protocol for establishing, configuring, and testing the link connections
- A collection of network control protocols for controlling network-layer protocols
How Does the Link Work?
As we initially covered, a point-to-point link is a dedicated connection between two networking devices (such as two computers or a computer and a printer). The entire bandwidth of this link is used for data transmission between these two devices. Modern-day point-to-point links are made up of PSTN (Public Switched Telephone Networks) and modems.
There are multiple connections between individual machines in a point-to-point network. The PPP can be used for connecting two different networks using point-to-point links, and one system serves as an endpoint in each network. The endpoint communication occurs through phone lines and modems and at these endpoints Point-to-Point Protocol (PPP) software is essentially a router for the physical network. This PPP configuration is used for setting up an internetwork that covers a greater geographical area.
The packet follows various routes to move from the source to destination. In the PPP (Point-to-Point Protocol), a data link protocol is helpful in providing a direct connection between two networking devices. PPP also provides encryption, authentication, and compression mechanisms. Multiple physical networks like a phone line, fiber optic, serial cable, trunk line, or radio links use PPP, and it can also be used over broadband connectivity.
Figure 1

In this first figure appearing here, the point-to-point connectivity is established using PPP between a PC and a server. The PC authenticates using a username and a password and then the server accepts the connection on successful authentication.
The ISPs (Internet Service Providers) use PPP for providing dial-up access to their customers as the IP packets will not be sent over a modem line alone without using some data link protocols. Two encapsulated variations of Point-to-Point Protocol (PPP) over ATM (PPPoA) and PPP over Ethernet (PPoE) are widely used by ISPs for establishing a DSL (Digital Subscriber Line) connection with the internet users (customers).
There are some various applications of PPP. Some of them include the following:
- It provides a dedicated link between two systems that are suitable for higher bandwidth requirements.
- PPP, the data link layer protocol, is mainly used for establishing connections over asynchronous and synchronous circuits.
- PPP has widely replaced the older methods such as SLIP (Serial Line Internet Protocol), LAPB, and Link Access Protocol
- PPP can work with the majority of the network layer protocols like TRILL, IP, IPX, and so on.
Lesson Summary
All right, let’s take a moment or two to review. As we learned, point-to-point link-based systems are dedicated connections established between two networking systems. They’re used for transporting multi-protocol data over the network using Point-to-Point Protocol (PPP), which as we learned, denotes a group of networking protocols, which imply a standard method for transporting multi-protocol information over the point-to-point links. We also learned how the entire bandwidth is used for communication between those two systems. PPP-established point-to-point links are useful for higher bandwidth needs, synchronous and asynchronous networks, and replacement for older methods by Internet Service Providers.


















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