The L2TP standard says that the most secure way to encrypt data is using L2TP over IPsec (Note that it is default mode for Microsoft L2TP client) as all L2TP control and data packets for a particular tunnel appear as homogeneous UDP/IP data packets to the IPsec system. It may also be useful to use L2TP just as any other tunneling protocol with or without encryption. From the user's perspective, there is no functional difference between having the L2 circuit terminate in a NAS directly or using L2TP. This allows the actual processing of PPP packets to be separated from the termination of the Layer 2 circuit. With L2TP, a user has a Layer 2 connection to an access concentrator - LAC (e.g., modem bank, ADSL DSLAM, etc.), and the concentrator then tunnels individual PPP frames to the Network Access Server - NAS. The purpose of this protocol is to allow the Layer 2 and PPP endpoints to reside on different devices interconnected by a packet-switched network. L2TP incorporates PPP and MPPE (Microsoft Point to Point Encryption) to make encrypted links. L2TP encapsulates PPP in virtual lines that run over IP, Frame Relay and other protocols (that are not currently supported by MikroTik RouterOS).
L2TP is a secure tunnel protocol for transporting IP traffic using PPP. 5.4 L2TP/IpSec with static IPSec server setup.
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