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When the
encapsulation ppp
command is used either PAP or CHAP
authentication can be optionally added. If no authentication is
specified the PPP session starts immediately. If authentication is
required the process proceeds through the following steps:

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The method of authentication is determined.
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The local database or security server, which has a username and
password database, is checked to see if the given username and
password pair matches.
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The process checks the authentication response sent back from the
local database. If it is a positive response, the PPP session is
started. If negative, the session is terminated.
The Figure
and corresponding Figure
details the
CHAP authentication process.
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Interactive Media Activity
Drag and Drop: PPP Encapsulation and Authentication Process
When the student has completed this activity, the student
will know the steps in the PPP authentication process.

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