Packet Filtering is the type of firewall built into the Linux kernel.

A filtering firewall works at the network level. Data is only allowed to leave the system if the firewall rules allow it. As packets arrive they are filtered by their type, source address, destination address, and port information contained in each packet.

Many network routers have the ability to perform some firewall services. Filtering firewalls can be thought of as a type of router. Because of this you need a deep understanding of IP packet structure to work with one.

Because very little data is analyzed and logged, filtering firewalls take less CPU and create less latency in your network.

Filtering firewalls do not provide for password controls. User can not identify themselves. The only identity a user has is the IP number assigned to their workstation. This can be a problem if you are going to use DHCP (Dynamic IP assignments). This is because rules are based on IP numbers you will have to adjust the rules as new IP numbers are assigned. I don’t know how to automate this process.

Filtering firewalls are more transparent to the user. The user does not have to setup rules in their applications to use the Internet. With most proxy servers this is not true.