Transport mode is when the IPaddress that is used to determine the IPsec VPN client is transmitting data to a remote server.
Tunnel mode is when the IPaddress that is used to determine the IPsec VPN client is receiving data from a remote server and transmitting it back to the local network. Transport and tunnel modes are typically both implemented in transport-mode IKEv1, but there's no reason they can't be used in transport-mode IKEv2 or one of the tunnel modes in IKEv2 Tunnel Mode.
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