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I had a doubt regarding point-to-point protocol. Is it possible for a single PPP link to enable running of 2 or more simultaneous applications between two hosts?

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That depends on what you configure PPP to do.

PPP can provide one or more network-layer links on top of a serial interface. If you run an entire network stack over PPP (e.g. IPv4) supporting transport-layer protocols (TCP, UDP, ...) then you can use the latter to multiplex a large number of application-layer protocols across the link. PPP also supports using multiple network-layer protocols, so you can run IPv4, IPv6, IPX, ... concurrently.

You can even route across a PPP link, so you could use it to connect entire networks. Mind you, many Internet access routers use PPPoE or PPPoA to connect your network to the world.

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