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The phase 2 Security Association contains the keys that are used to encrypt and decrypt IPSec packets on the host, authenticate IPSec packets on the host, or both.

Internet Key Exchange (IKE) is an authentication protocol used to set up secure and authenticated communication channel between two endpoints to establish IKE tunnels or Security Associations (SAs) used for Internet Protocol Security (IPsec). IKEv1 and IKEv2 are the two versions of IKE.

IKE is comprised of two phases. In phase 1, IKE creates an authenticated, secure channel between the two IKE peers. In phase 2, IKE negotiates the IPSec security associations and generates the required key material for IPSec.

After the tunnel is secured and authenticated, in Phase 2 the channel is further secured for the transfer of data between the networks. IKE Phase 2 uses the keys that were established in Phase 1 of the process and the IPSec Crypto profile, which defines the IPSec protocols and keys used for the SA in IKE Phase 2.

IKE negotiation includes two phases: Phase 1?Negotiate exchange of proposals for how to authenticate and secure the channel. Phase 2?Negotiate security associations (SAs) to secure the data that traverses through the IPsec tunnel.

IKE version 2 is an enhancement to the Internet key exchange protocol. IKE version 2 (IKEv2) was developed by the IETF with RFC4306. IKEv2 enhances the function of negotiating the dynamic key exchange and authentication of the negotiating systems for VPN.

VPN negotiations happen in two distinct phases: Phase 1 and Phase 2. Phase 1. The main purpose of Phase 1 is to set up a secure encrypted channel through which the two peers can negotiate Phase 2. When Phase 1 finishes successfully, the peers quickly move on to Phase 2 negotiations.