The Internet Security Association Key Management Protocol (ISAKMP) is used to form a primary channel for secure communication between IPSEC peers, enabling the exchange of keys for Phase 2 encryption. A separate ISAKMP policy is defined with an encryption method of '3DES', hashing algorithm of 'MD5', and authentication using a pre-shared key. An IPSec policy defines the traffic allowed through the VPN tunnel, including source and destination private IP addresses. The transform set is configured with ESP as the protocol, 3DES for encryption, and MD5 for hashing. A crypto map is created that connects the ISAKMP and IPSec configurations, specifying the peer, transform set, and access list. Finally, the crypto map is applied to the outgoing interface of the router. To verify the VPN, a ping test is performed from one site's private IP address to another site's private IP address, confirming successful establishment of the secure connection.
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