About this interactive
Cryptographic building blocks are rarely used alone. Hashing, symmetric encryption and asymmetric cryptography are combined into protocols that solve a problem. TLS is one: it adds security to HTTP to make HTTPS, and it uses hashing, symmetric algorithms, asymmetric algorithms and public key infrastructure together.
A VPN tunnel solves a different problem. Site A and Site B want to act as if they were directly connected, but the traffic between them crosses other networks that may not be secure. A virtual private network encrypts that traffic, so it is private even though it travels over shared networks.
The lesson names two ways to build the tunnel. A TLS VPN works much like a secure website. The lesson places it at the application layer, a common way to class it; TLS itself runs on top of the transport layer, over TCP or, as DTLS, over UDP. An IPsec VPN operates at layer 3, the network layer: it is the IP layer's own security, and it sets up its keys with its own protocol, IKE. The lesson calls IPsec much more prevalent for VPNs, and it is the usual choice for linking sites; for remote users, TLS VPNs are common too.
Do not sort by "which one carries every application's traffic". IPsec does, from layer 3. So does a full-tunnel TLS VPN client, such as OpenVPN or Cisco AnyConnect: it adds a virtual network adapter and carries every application's IP packets inside TLS or DTLS. Only the browser-portal kind of TLS VPN is limited to the browser. The real differences are where the protection sits (IP itself, or on top of the transport layer) and how the keys are set up (IKE, or a TLS handshake).
They work quite differently, but they use the same concepts: hashes, symmetric algorithms and asymmetric algorithms. In both, a Diffie-Hellman key exchange (asymmetric cryptography) normally agrees the keys, and the bulk of the traffic is encrypted with fast symmetric encryption.
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