PPP supports authentication through Password Authentication Protocol (PAP) and Challenge Handshake Authentication Protocol (CHAP), with CHAP providing a more secure method of authentication. CHAP passwords are encrypted and safe from intruders because they are never actually transmitted on the wire. This technique, known as shared secrets, means that both devices know the secret (password), but they never talk about it directly. PAP passwords are sent in clear text; they are clearly visible on the wire.

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