For interfaces with PPPoE encapsulation, you can configure interfaces to support the PPP Challenge Handshake Authentication Protocol (CHAP). When you enable CHAP on an interface, the interface can authenticate its peer and be authenticated by its peer.
If you configure an interface to handle incoming CHAP packets only (by including the passive statement at the [edit interfaces interface-name ppp-options chap] hierarchy level), the interface does not challenge its peer. However, if the interface is challenged, it responds to the challenge. If you do not include the passive statement, the interface always challenges its peer.
For more information about CHAP, see Configuring the PPP Challenge Handshake Authentication Protocol.