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Firewalls are actually software, but many vendors bundle them with hardware to avoid problems caused by hardware incompatibility. Virtualization has helped a lot with the compatibility question, so you can get most modern firewalls also as virtual editions, specially those, that support Intel platforms. Jun 24, 2010  A firewall is a protective system that lies, in essence, between your computer network and the Internet. When used correctly, a firewall prevents unauthorized use and access to your network. Since hardware firewalls protect the entire network, only one device is needed. Also, when it's time to update the firewall’s rules, a single update will secure all machines. Conversely, a software solution would have to be updated on all devices. Speed and security are the greatest attributes of a hardware firewall. Software Firewalls. Unlike hardware firewalls, the software firewalls are installed on individual computers that sit as a barrier between the computer and the Internet. The firewall will scan all data coming from the Internet for threats before accessing the computer. If a threat is detected, it will be prevented from entering the PC.

There are two types of firewalls: hardware firewalls and software firewalls. Your router functions as a hardware firewall, while Windows includes a software firewall. There are other third-party firewalls you can install, too.

In August 2003, if you connected an unpatched Windows XP system to the Internet without a firewall, it could be infected within minutes by the Blaster worm, which exploited vulnerabilities in network services that Windows XP exposed to the Internet.

In addition to demonstrating the importance of installing security patches, this demonstrates the importance of using a firewall, which prevents incoming network traffic from reaching your computer. But if your computer is behind a router, do you really need a software firewall installed?

How Routers Function as Hardware Firewalls

Home routers use network address translation (NAT) to share a single IP address from your Internet service provide among the multiple computers in your household. When incoming traffic from the Internet reaches your router, your router doesn’t know which computer to forward it to, so it discards the traffic. In effect, the NAT acts as a firewall that prevents incoming requests from reaching your computer. Depending on your router, you may also be able to block specific types of outgoing traffic by changing your router’s settings.

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You can have the router forward some traffic by setting up port-forwarding or putting a computer in a DMZ (demilitarized zone), where all incoming traffic is forwarded to it. A DMZ, in effect, forwards all traffic to a specific computer – the computer will no longer benefit from the router acting as a firewall.

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How Software Firewalls Work

A software firewall runs on your computer. It acts as a gatekeeper, allowing some traffic through and discarding incoming traffic. Windows itself includes a built-in software firewall, which was first enabled by default in Windows XP Service Pack 2 (SP2). Because software firewalls run on your computer, they can monitor which applications want to use the Internet and block and allow traffic on a per-application basis.

If you’re connecting your computer directly to the Internet, it’s important to use a software firewall – you shouldn’t have to worry about this now that a firewall comes with Windows by default.

Hardware Firewall vs. Software Firewall

Hardware and software firewalls overlap in some important ways:

• Both block unsolicited incoming traffic by default, protecting potentially vulnerable network services from the wild Internet.
• Both can block certain types of outgoing traffic. (Although this feature may not be present on some routers.)

Advantages of a software firewall:

• A hardware firewall sits between your computer and the Internet, while a software firewall sits between your computer and the network. If other computers on your network become infected, the software firewall can protect your computer from them.
• Software firewalls allow you to easily control network access on a per-application basis. In addition to controlling incoming traffic, a software firewall can prompt you when an application on your computer wants to connect to the Internet and allow you to prevent the application from connecting to the network. This feature is easy to use with a third-party firewall, but you can also prevent applications from connecting to the Internet with the Windows firewall.

Advantages of a hardware firewall:

• A hardware firewall sits apart from your computer – if your computer becomes infected with a worm, that worm could disable your software firewall. However, that worm couldn’t disable your hardware firewall.
• Hardware firewalls can provide centralized network management. If you run a large network, you can easily configure the firewall’s settings from a single device. This also prevents users from changing them on their computers.

Do You Need Both?

It’s important to use at least one type of a firewall – a hardware firewall (such as a router) or a software firewall. Routers and software firewalls overlap in some ways, but each provides unique benefits.

If you already have a router, leaving the Windows firewall enabled provides you with security benefits with no real performance cost. Therefore, it’s a good idea to run both.

You don’t necessarily have to install a third-party software firewall that replaces the built-in Windows firewall – but you can, if you want more features.

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You've heard that you need a firewall, but there are so many options. Software firewall? Hardware firewall? How do you know which is right for you?

Hardware Firewall And Software Firewall

First of all, hardware is something you can see, like the monitor you are looking at to read this text right now. Hardware refers to the hard physical elements—the computer, the keyboard, the circuitry inside your computer—anything you can see and touch. Hardware always includes some form of software. For example, your computer keyboard has a software program written into the circuitry that allows what you type to appear on the screen. But you don't have to purchase this software for your keyboard. It's already there.

Difference Between Hardware Firewall Vs Software Firewall

Software, on the other hand, is a computer program that tells the hardware exactly what to do. This webpage, for example, was written in a computer language called HTML. HTML tells your monitor how to display the text you are reading now. Software is the name for the instructions that tell the computer what to do.

Hardware Firewalls Compared

A hardware firewall is a small metal box filled with plug openings, or ports. You hook your computer network into the box then set it up on your computer, just as you would a new printer or other peripheral. Because it's not physically on your machine, a hardware firewall is less vulnerable than a software firewall.

Software firewalls give you the level of protection you need to keep safe from hackers and other unwanted intrusions because software is far easier for computer novices to customize. The features are suited to smaller home networks.

Some top software firewall packages also include antispam, antivirus, even anti-popup ad software. Some software firewalls include parental controls to manage what kinds of websites your children visit. Some packages allow you to block photos and specific text content that you do not want your children to view.

Hardware firewalls are best suited to businesses and large networks. IT professionals often have hardware firewalls in their homes. But for average consumers, software firewalls are best suited for home use.

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To learn more, check out our list of the best personal firewalls available.