A VPN is a private network created over a public one. It’s done with encryption, this way, your data is encapsulated and secure in transit – this creates the ‘virtual’ tunnel. A VPN is a method of connecting to a private network by a public network like the Internet. An internet connection in a company is common. An Internet connection in a Home is common too. With both of these, you could create an encrypted tunnel between them and pass traffic, safely - securely.

If you want to create a VPN connection you will have to use encryption to make sure that others cannot intercept the data in transit while traversing the Internet. Windows XP provides a certain level of security by using Point-to-Point Tunneling Protocol (PPTP) or Layer Two Tunneling Protocol (L2TP). They are both considered tunneling protocols – simply because they create that virtual tunnel just discussed, by applying encryption.