PPPoE is a proprietary protocol from RedBack Networks. PPPoE is a discovery protocol, rather than another version of standard PPP. In a PPPoE scenario, a machine that initiates PPP communications first must locate, or discover, a peer that runs PPPoE. The PPPoE protocol uses Ethernet broadcast packets to locate the peer.
After the discovery process, PPPoE sets up an Ethernet-based tunnel from the initiating host, or PPPoE client, to the peer, the PPPoE access server. Tunneling is the practice of running one protocol on top of another protocol. Using PPPoE, Solaris PPP 4.0 tunnels PPP over Ethernet IEEE 802.2, both of which are data link protocols. The resulting PPP connection behaves like a dedicated link between the PPPoE client and the access server. For detailed information about PPPoE, see Creating PPPoE Tunnels for DSL Support.