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IPsec ESP can be used in two different modes of operation. In the first mode, ESP is used to encrypt and optionally authenticate the data carried by IP (e.g., a TCP segment). For this mode using IPv4, the ESP header is inserted into the IP packet immediately prior to the transport-layer header (e.g., TCP, UDP, ICMP) and an ESP trailer (Padding, Pad Length, and Next Header fields) is placed after the IP packet; if authentication is selected, the ESP Authentication Data field is added after the ESP trailer. The entire transport-level segment plus the ESP trailer are encrypted. Authentication covers all of the ciphertext plus the ESP header. In the second mode, ESP is used to encrypt an entire IP packet. For this mode, the ESP header is prefixed to the packet and then the packet plus the ESP trailer are encrypted. This method can be used to counter traffic analysis. Because the IP header contains the destination address and possibly source routing directives and hop-by-hop option information, it is not possible simply to transmit the encrypted IP packet prefixed by the ESP header. Intermediate routers would be unable to process such a packet. Therefore, it is necessary to encapsulate the entire block (ESP header plus ciphertext plus authentication data, if present) with a new IP header that will contain sufficient information for routing. Suggest applications for the two modes.

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