Around the time the 802.11i task force was formed a solution was needed to keep the airwaves secure for LANs while a full recommendation was being formed through the 802.11i amendment. WPA was an interim solution to the security flaws discovered in WEP. It implements most of what is found in the 802.11i specifications. It uses TKIP (Temporal Key Integrity Protocol) as the underlying security protocol which is based on RC4 (a stream cipher algorithm). TKIP uses many of the same mechanism as WEP, however through various means (e.g. message integrity check, per packet key hashing, broadcast key rotations, sequence counter) it is able to minimize its vulnerability.
WPA2 is the final result of the work done under 802.11i, and it replaces WPA. WPA2 implements the mandatory components of 802.11i. It provides government grade security by implementing the National Institute of Standards and Technology (NIST) FIPS 140-2 compliant AES (Advanced Encryption Standard) encryption algorithm.
There are two version of WPA2--the enterprise and personal versions. The personal version is also known as Pre-Shared Key mode. It is designed for home or locations where there is no need nor practical to have an authentication servers. It uses 256-bit key which can be entered as 64 HEX digits or as a passphrase of 8 to 63 ASCII characters. The enterprise version uses authentication servers and provides support for additional EAP (Extensible Authentication Protocol) types, in addition to EAP-TLS (Transport Layer Security).