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What is a Firewall and Why Do I Need One?

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Published: May 19, 2025

A firewall is a network security device that prevents unauthorized access to a network by inspecting incoming and outgoing traffic using a set of predetermined security rules.

The main purpose of a firewall is to act as a barrier between a trusted internal network, such as a home or business network and untrusted external networks, such as the internet, to help prevent unauthorized access, cyberattacks and data breaches. A firewall can be physical hardware, digital software, software as a service (SaaS) or a virtual private cloud.

Firewalls are used in both personal and enterprise settings, and many devices, including Mac, Windows and Linux computers, come with a built-in firewall. They're widely considered an essential component of network security.

History of Firewalls

The history of firewalls mirrors the evolution of the internet and the increasing sophistication of cyber threats. Here's a timeline of the key stages of firewalls:

This diagram illustrates how a traditional firewall works. Why are firewalls important?

Firewalls serve as the first line of defense against external threats, such as hackers and malware attacks. In particular, firewalls combined with an IPS are crucial in preventing malware and certain application layer attacks.

Firewalls first emerged in the early days of the internet when networks needed new security methods that could handle increasing complexity. They've since become the foundation of network security in the client-server model -- the central architecture of modern computing.

Overall, firewalls play an important role in preventing cyberattacks, protecting sensitive data, and maintaining the privacy and security of computer systems and networks.

How does a firewall work?

A firewall establishes a border between an external network and the network it guards. It's inserted inline across a network connection and inspects all packets entering and leaving the guarded network. As it inspects, it uses a set of preconfigured rules to distinguish between benign and malicious traffic or packets.

The term packet refers to a piece of data formatted for internet transfer. Packets contain the data itself and information about the data, such as where it came from, source and destination IP addresses, the port numbers being used and the protocols such as Transmission Control Protocol (TCP) or User Datagram Protocol (UDP). Firewalls can use this packet information to determine whether a given packet abides by the rule set. If it doesn't, the packet is barred from entering the guarded network. Rule sets can be based on several things indicated by packet data, including source, destination and content.

These characteristics can be represented differently at different levels of the network. As a packet travels through the network, it's reformatted several times to tell the protocol where to send it.

Different types of firewalls exist to read packets at different network levels.

Benefits of using firewalls

Firewalls are used in both corporate and consumer settings. Modern organizations incorporate them into a security information and event management strategy along with other cybersecurity devices.

Firewalls are often used alongside antivirus applications. Unlike corporate ones, personal firewalls are usually a single product rather than a collection of various products. They can be software or a device with firewall firmware embedded.

The following are some use cases of firewalls:

Types of firewalls

Firewalls are either categorized by the way they filter data or by the system they protect.

When categorized by what they protect, the two types are network-based and host-based. Network-based firewalls guard entire networks and are often hardware. Host-based firewalls guard individual devices -- known as hosts -- and are often software.

When categorizing by filtering method, the main types are as follows:

This chart illustrates the different firewall types and their advantages and disadvantages.

Each type of firewall in the list above examines traffic with a higher level of context than the one before; for example, a stateful firewall has more context than a packet-filtering firewall.

Packet-filtering and network layer firewalls

When a packet passes through a packet-filtering firewall, its source and destination address, protocol and destination port number are checked. The packet is dropped, meaning it isn't forwarded to its destination if it doesn't comply with the firewall's rule set. For example, if a firewall is configured with a rule to block Telnet access, then the firewall drops packets destined for TCP port number 23, the port where a Telnet server application would be listening.

A packet-filtering firewall works mainly on the network layer of the OSI reference model, although the transport layer is used to obtain the source and destination port numbers. It examines each packet independently and doesn't know whether any given packet is part of an existing stream of traffic.

The packet-filtering firewall is effective, but because it processes each packet in isolation, it can be vulnerable to IP spoofing attacks and has largely been replaced by stateful inspection firewalls.

Stateful inspection firewalls

Stateful inspection firewalls -- also known as dynamic packet-filtering firewalls -- monitor communication packets over time and examine both incoming and outgoing packets.

This type of firewall maintains a table that keeps track of all open connections. When a new packet arrives, it compares information in the packet header to the state table -- its list of valid connections -- and determines whether the packet is part of an established connection. If it is, the packet is let through without further analysis. But, if the packet doesn't match an existing connection, it's evaluated according to the rule set for new connections.

Although stateful inspection firewalls are quite effective, they can be vulnerable to denial-of-service (DoS) attacks. DoS attacks take advantage of established connections that this type of firewall generally assumes are safe.

Circuit-level gateway firewalls

When a trusted client or server sends a packet to an untrusted host and vice versa, a circuit-level gateway firewall examines the TCP handshaking between the two packets. It controls network traffic at the session level and keeps track of the OSI model's session layer. Instead of examining the content of the packets, this firewall inspects the protocol headers of the packets to determine if a session is legitimate.

Whenever a circuit-level gateway firewall receives a request from a trusted client or server to connect to an untrusted host, it starts a three-way handshake with the destination host to establish a session. It then forwards the packets between the two hosts without further inspecting the content of the packets.

This type of firewall can provide a higher level of security than packet-filtering firewalls because it can detect and prevent certain attacks, such as port scanning and DoS attacks. However, because it doesn't examine the packet content, a circuit-level gateway firewall can't offer the same level of security as an application layer firewall.

Application layer and proxy firewalls

This type of firewall is referred to as a proxy-based or reverse-proxy firewall. They provide application layer filtering and can examine the payload of a packet to distinguish valid requests from malicious code disguised as a valid request for data. As attacks against web servers became more prevalent, so did the need for firewalls to protect networks from attacks at the application layer. Packet-filtering and stateful inspection firewalls can't do this at the application layer.

Since this type of firewall examines the payload's content, it gives security engineers more granular control over network traffic. For example, it can allow or deny a specific incoming Telnet command from a particular user, whereas other types of firewalls can only control general incoming requests from a particular host.

When this type of firewall lives on a proxy server -- making it a proxy firewall -- it becomes harder for an attacker to discover where the network is and creates yet another layer of security. Both the client and the server are forced to conduct the session through an intermediary -- the proxy server that hosts an application layer firewall. Each time an external client requests a connection to an internal network server or vice versa, the client opens a connection with the proxy instead. If the connection request meets the criteria in the firewall rule base, the proxy firewall opens the connection.

The key benefit of application layer filtering is the ability to block specific content, such as known malware or certain websites, and recognize when certain applications and protocols, such as HTTP, FTP and domain name system, are being misused. Application layer firewall rules can also be used to control the execution of files or the handling of data by specific applications.

Next-generation firewalls

This type of firewall is a combination of the other types with additional security software and devices bundled in. The benefit of an NGFW is that it combines the strengths of each type of firewall to cover each type's weaknesses. An NGFW is often a bundle of technologies under one name, as opposed to a single component.

Modern network perimeters have so many entry points and different types of users that stronger access control and security at the host are required. This need for a multilayer approach led to the emergence of NGFWs.

An NGFW integrates three key assets: traditional firewall capabilities, application awareness and an IPS. Similar to the introduction of stateful inspection to first-generation firewalls, NGFWs bring additional context to the firewall's decision-making process.

NGFWs combine the capabilities of traditional enterprise firewalls, including network address translation, URL blocking and VPNs, with quality of service functionality and features not traditionally found in first-generation products. NGFWs support intent-based networking by including Secure Sockets Layer and Secure Shell inspection and reputation-based malware detection. NGFWs also use DPI to check the contents of packets and prevent malware.

When an NGFW, or any firewall, is used in conjunction with other devices, it's termed unified threat management.

Virtual firewalls

A virtual firewall runs entirely within a virtualized environment and provides the same security and inspection capabilities as a hardware firewall.

It monitors and inspects network traffic between VMs and between VMs and the outside world. The firewall is situated between the VMs and the hypervisor that provides the virtualization layer and inspects traffic at the network layer to determine whether to allow or block packets based on a set of predefined rules.

Virtual firewalls can filter traffic based on IP address, ports, protocols and other factors and provide the same security and inspection capabilities as physical firewalls. Some virtual firewalls also offer security capabilities, including application-level security, intrusion detection and intrusion prevention. SonicWall NSv Series and Juniper vSRX Virtual Firewall are examples of virtual firewalls.

Cloud-native firewalls

A cloud-native firewall is a type of virtual firewall that's specifically designed to operate within a cloud-based infrastructure. It's a network firewall security system that provides traffic filtering and monitoring for VMs and containers running in a cloud environment.

Cloud-native firewalls provide the same security and inspection capabilities as traditional virtual firewalls but are optimized for the dynamic and scalable nature of cloud-based environments. They're designed to integrate with cloud orchestration platforms, such as Kubernetes, and provide automated security policy enforcement across a large number of cloud resources.

Web application firewall

A WAF is designed to protect web applications by filtering, monitoring and blocking malicious HTTP/HTTPS traffic between a web application and the internet. Unlike traditional firewalls that operate at lower layers of the OSI model, WAFs function at the application layer, enabling them to identify and mitigate threats that target specific vulnerabilities in web applications. Common threats blocked by WAFs include SQL injection, cross-site scripting, cross-site request forgery and file inclusion attacks.

WAFs inspect incoming and outgoing HTTP requests and apply a set of predefined rules or policies to determine whether the traffic is benign or malicious. These rules can be based on known attack patterns, anomaly detection, or behavioral analysis.

WAFs can be deployed in various forms, including network-based appliances, host-based software, or cloud-based services, providing flexibility to match an organization's infrastructure and security needs.

Understanding firewall vulnerabilities

Less advanced firewalls -- packet-filtering firewalls, for example -- are vulnerable to higher-level attacks because they don't use DPI to fully examine packets. NGFWs were introduced to address that vulnerability. But NGFWs still face challenges and are vulnerable to evolving threats. For this reason, organizations should pair them with other security components, such as intrusion detection systems and intrusion prevention systems. Examples of modern threats that a firewall can be vulnerable to include the following:

Firewall vendors

Enterprises looking to purchase a firewall should understand their needs and network architecture. There are many different types of firewall vendors offering a range of features. According to Gartner Peer Insights and Informa TechTarget's independent research, the following NGFW vendors are recognized for their performance and market presence:

Firewall best practices

The following are some common firewall best practices that most organizations should follow:

This diagram illustrates the placement of multiple firewalls in an enterprise network. Controversial uses of firewalls

While firewalls are primarily seen as security tools, their capabilities can be used in ways that raise ethical, political or social concerns. Here are some controversial uses of firewalls:

Future of network security

In the early days of the internet, when AT&T's Steven M. Bellovin first used the firewall metaphor, network traffic primarily flowed north-south. This simply means that most of the traffic in a data center flowed from client to server and server to client. In the past few years, however, virtualization and trends such as converged infrastructure have created more east-west traffic, which means that, sometimes, the largest volume of traffic in a data center is moving from server to server.

To deal with this change, some enterprises have migrated from the traditional three-layer data center architecture to various forms of leaf-spine architecture. This change in architecture has caused some security experts to warn that, while firewalls still have an important role to play in keeping a network secure, they risk becoming less effective. Some experts even predict a departure from the client-server model altogether.

The following are some emerging trends in network security worth exploring:

As the cybersecurity landscape continues to evolve, organizations need to stay proactive in adopting innovative services for mitigating threats and ensuring network security.

Given the wide variety of firewalls available on the market, it can be overwhelming to differentiate between them. Explore the distinctions and similarities between the basic categories of firewalls.

Continue Reading About What is a firewall and why do I need one? Dig Deeper on Network security

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