V VPN Glossaryvpnglossary.com
163 entries · 2026 ed.
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Tunneling

Encapsulating one network protocol inside another — the conceptual heart of every VPN, where original traffic is wrapped in encrypted packets for transit.

§ 01

Definition

Tunneling is the practice of encapsulating one network protocol inside another. In the VPN context, your normal IP packets are wrapped inside a second layer of IP packets that are encrypted and addressed to the VPN server. The original packet — including its true destination — is hidden inside the outer packet, which is what crosses the public internet. The VPN server unwraps the outer layer, exposes the inner packet, and forwards it to its real destination.

§ 02

Why the Metaphor Fits

The 'tunnel' image conveys two ideas. The traffic enters at one end and exits at the other, with no exposure in between — the packet contents are hidden from anything along the way. And the tunnel has explicit endpoints: it does not extend beyond the VPN server, so anything past that point flows on the open internet. Both properties matter for understanding what a VPN does and does not protect.

§ 03

Tunneling Protocols

Many tunneling protocols exist, with different design choices. PPTP (obsolete) tunnels PPP frames over GRE. L2TP tunnels Layer 2 frames and is paired with IPSec for encryption. IPSec ESP in tunnel mode is itself a tunneling protocol. OpenVPN runs its own tunnel over UDP or TCP. WireGuard tunnels IP directly over UDP with its built-in encryption. Each represents a different trade-off between simplicity, security, and compatibility.