The problem with general communication methods-
Businesses had to historically dedicate on leased dedicated circuits such as T1, ISDN and OC3. Although these methods provide reliable private secure methods, these lines are expensive and often rise in cost as the distance between offices increase.
What is VPN?
VPNs (Virtual Private Networks) are type of point-to-point connections across a private or public network.
VPNs use a tunneling process to secure data while transferring data through insecure medium like the internet. 
When a message to be sent is composed and submitted for sending through an insecure medium, a virtual envelope is created around the data, thus securing what is inside the message from the outsiders.
Then a virtual tunnel is created for routing between different ports by which the message is sent across. See figure below for more details.
1. Remote access VPN
2. Site-to-site VPN
Site-to-site VPNs-
Site-to-site VPNs allow individual networks at multiple locations to establish connections between them.
There are three main conditions that are expected from a VPN:
1. Security-
Security is the corner stone of all the VPNs. The three main goals of VPN security are data confidentiality, data integrity and data authentication. Data confidentiality protect data from eavesdroppers. Encryption is used for this. Data integrity ensures that data has not been tampered with (that is it has not been either modified or fabricated). Authentication ensures that only authorized senders and receivers enter the network.
2. Reliability-
Another important security goal is the availability of data and related facilities. When a VPN is set up, the connection should be reliable such that the user(s) in the VPN should be connected regardless of the time and location. It is also expected that VPNs should provide the same quality of connection for each individual user regardless of the traffic.
3. Scalability-
This means that updating and upgrading/downgrading of network facilities should be easy as a business continues. When existing connections are removed/modified or when new connections are added to a VPN, the VPN should be easily set up such that time long maintenance of modifications is not necessary and that data should be available in such instances.
Therefore, more advanced techniques have to be used when concerning the encryption and the overall security of data transmission in a VPN. The two techniques used are the IPSec (Internet Protocol Security) and GRE (Generic Routing Encapsulation), where IPSec is the major contributor.
Encrypts the packet's payload using a symmetric key.
2.Authentication Header (AH)-
Uses a hashing operation on the packet header for information hiding.
Businesses had to historically dedicate on leased dedicated circuits such as T1, ISDN and OC3. Although these methods provide reliable private secure methods, these lines are expensive and often rise in cost as the distance between offices increase.
Fig 1 : Leased lines |
What is VPN?
VPNs (Virtual Private Networks) are type of point-to-point connections across a private or public network.
VPNs use a tunneling process to secure data while transferring data through insecure medium like the internet. 
When a message to be sent is composed and submitted for sending through an insecure medium, a virtual envelope is created around the data, thus securing what is inside the message from the outsiders.
Then a virtual tunnel is created for routing between different ports by which the message is sent across. See figure below for more details.
Tunneling-
The process-
Tunneling is the process of placing one packet within another packet and sending it over the network. The protocol of the outer packet is understood by the network on both points. These points are called tunnel interfaces and at these points the packets enter and exit the network.
Tunneling is the process of placing one packet within another packet and sending it over the network. The protocol of the outer packet is understood by the network on both points. These points are called tunnel interfaces and at these points the packets enter and exit the network.
Protocols-
Tunneling requires three different protocols: carrier protocol (the protocol used by the network that the information is travelling over), encapsulating protocol (the protocol such as SSL and IPSec that is wrapped around the original data) and the passenger protocol.Importance of tunneling-
Tunneling is important as we can use a private IP address in
a packet that is surrounded by a globally unique IP address to extend the
private network over the internet. Tunneling also allows users to place a protocol
that is not supported in the internet over a IP address and send it over the
internet.
Types of VPN connections-
There are two main types of VPN connections:1. Remote access VPN
2. Site-to-site VPN
Remote access VPNs-
Also called Virtual Private Dial-up Networks (VPDNs), remote access VPNs enables individual users to establish connections with remotely set-up computer networks.Site-to-site VPNs-
Site-to-site VPNs allow individual networks at multiple locations to establish connections between them.
What is expected from a VPN over an insecure medium approach?
There are three main conditions that are expected from a VPN:
1. Security-
Security is the corner stone of all the VPNs. The three main goals of VPN security are data confidentiality, data integrity and data authentication. Data confidentiality protect data from eavesdroppers. Encryption is used for this. Data integrity ensures that data has not been tampered with (that is it has not been either modified or fabricated). Authentication ensures that only authorized senders and receivers enter the network.
2. Reliability-
Another important security goal is the availability of data and related facilities. When a VPN is set up, the connection should be reliable such that the user(s) in the VPN should be connected regardless of the time and location. It is also expected that VPNs should provide the same quality of connection for each individual user regardless of the traffic.
3. Scalability-
This means that updating and upgrading/downgrading of network facilities should be easy as a business continues. When existing connections are removed/modified or when new connections are added to a VPN, the VPN should be easily set up such that time long maintenance of modifications is not necessary and that data should be available in such instances.
What encryption standards are used in tunneling?
The two main types of encryption are symmetric/secret key encryption and asymmetric/public key encryption. Both uses a pair of keys for encryption and decryption processes. However, both of these methods share a common drawback - key management problems i.e. when users (in this case networks) get added into a specific VPN, the keys have to be managed and distributed to the new parties. However, sharing of keys is insecure and often is intercepted before the other party receives it.Therefore, more advanced techniques have to be used when concerning the encryption and the overall security of data transmission in a VPN. The two techniques used are the IPSec (Internet Protocol Security) and GRE (Generic Routing Encapsulation), where IPSec is the major contributor.
IPSec consists of two sub-protocols:
1. Encapsulated Security Payload (ESP)-Encrypts the packet's payload using a symmetric key.
2.Authentication Header (AH)-
Uses a hashing operation on the packet header for information hiding.
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