said by Matt :

How is this any different than say a VPN? If it works at the network layer (Layer 3) how is that going to prevent an ISP from throttling it if they can throttle L2TP (Layer 2) now?

I respect the motivation of the Pirate Bay, but I question their fundamental knowledge of network protocols.

This protocol, like any other, will have an easily detectable signature, encrypted or not. If you're opening 150 encrypted sessions, you're obviously not using a VPN. In addition, an ISP knows the difference in an HTTPS/SSL session and a PPTP or L2TP/IPSec VPN session, so this traffic will stick out even more.

The only way right now to trick an ISP is to create an encrypted tunnel to a single endpoint, then let that endpoint open the 100+ simultaneous connections. If you do that however, your ISP won't care as a customer using a single session at max bandwidth is much easier on the network than a customer opening 100+ sessions and using their max bandwidth to boot.