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Types of Firewalls: Packet Filtering, Stateful, Proxy, and NGFW Compared

Ryan Offman by Ryan Offman
May 16, 2025
in Cybersecurity
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There are different types of firewalls. In this article, we will deep dive into comparing each of these firewalls and identify the key differences.

Packet-Filtering Firewalls

The earliest commercial firewalls simply examine each incoming or outgoing packet’s header. They read the source and destination IP address, port number, and protocol, then compare those values with an ordered list of rules. If a packet matches an “allow” rule, it moves on; if it matches a “deny” statement, it is dropped immediately.

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Advantages

  • Minimal CPU and memory footprint ideal for small routers or IoT gateways.
  • Near-wire-speed throughput because no payload inspection occurs.
  • Easy to understand: rule sets resemble straightforward “if/then” logic.

Limitations

  • No awareness of session context attackers can spoof single packets that appear legitimate.
  • Cannot inspect encrypted payloads or application behavior.
  • Lacks user identity integration.

The U.S. National Institute of Standards and Technology provides baseline guidelines for packet filters in SP 800-41.

Stateful Inspection Firewalls

Stateful devices keep a dynamic table that records every active connection source IP, destination IP, sequence numbers, and time-outs. When a follow-up packet arrives, the firewall checks whether it belongs to an existing session. If it does, the packet flows without re-evaluating the full rule set. If it does not, normal rule processing applies.

Benefits

  • Stronger security than stateless filters; spoofed packets rarely match a real session.
  • Greater performance than pure application proxies, as payloads often bypass heavy inspection once the session is approved.

Drawbacks

  • Connection tracking consumes RAM and CPU under heavy loads.
  • Complex protocols that open dynamic ports (for example, FTP or VoIP) can confuse state tables and cause false drops.

Cisco’s firewall primer illustrates how stateful inspection evolved to handle internet traffic growth in the 2000s.

Proxy Firewalls (Application-Level Gateways)

Proxy firewalls terminate inbound and outbound sessions locally, then open a second session on behalf of the user. Because they broker both sides, they can inspect full HTTP requests, SMTP commands, or FTP transfers rather than just headers.

  • Pros
    • Hide internal IP addresses from external hosts, improving privacy.
    • Apply granular rules, such as stripping malicious email attachments or blocking specific URL paths.
  • Cons
    • Additional handshake steps introduce latency, which users may notice in real-time apps.
    • Some applications require special configuration or cannot operate through strict proxies.

Many organizations still rely on cloud-delivered secure web gateways essentially large-scale HTTP proxies operated by providers like Zscaler.

Next-Generation Firewalls (NGFWs)

NGFWs bundle several inspection engines into one platform:

  • Deep Packet Inspection (DPI): scans payloads for malware, macros, or policy violations.
  • Intrusion Prevention System (IPS): blocks exploits in real time, referencing global threat-intelligence feeds from entities such as CISA.
  • Application Identification: recognizes SaaS traffic like Microsoft 365 or GitHub, then enforces usage policies.
  • User and Device Context: ties rules to identity from Azure AD or Okta, allowing finance staff different permissions from interns.

Because these appliances perform many security functions at once, companies can retire standalone IPS boxes and URL-filter gateways, simplifying operations.

Readers who want a deeper understanding of the different types of firewall technologies used in modern networks can explore Fortinet’s detailed glossary entry.

Which Firewall Type Is Right for You?

  • Small businesses often start with a low-cost stateful device from a managed service provider. It offers stronger protection than packet filtering without high complexity.
  • Mid-market firms choose NGFW appliances that combine DPI, IPS, and VPN to control SaaS use and remote work.
  • Enterprises run layered defenses: an NGFW at the edge, internal segmentation gateways, and cloud web application firewalls protecting public APIs.
  • Cloud-native teams prefer firewall-as-a-service or container-based proxies that integrate with infrastructure-as-code pipelines.

In some scenarios, combining layers works best an NGFW handles branch traffic while a proxy filters outbound web sessions, and a cloud WAF shields the customer-facing app stack.

Conclusion

Firewalls have progressed from simple packet filters to sophisticated NGFWs that parse application payloads and leverage threat intelligence in real time. Choosing the right model depends on network size, risk tolerance, and budget. Organizations secure the best results by matching firewall capabilities to business requirements and layering defenses where needed.

Frequently Asked Questions

Can multiple firewall types run together?

Yes. Many companies deploy a packet-filtering router at the ISP edge, an NGFW for deep inspection, and a SaaS proxy for user browsing. Layered defenses reduce single-point failure risk.

Do NGFWs replace the need for traditional IDS sensors?

In most modern networks, the inline IPS engine inside an NGFW delivers equivalent or better coverage, so separate IDS appliances are often retired to cut complexity.

How often should firewall rules be reviewed?

Security frameworks like CIS Benchmarks recommend quarterly audits and immediate review after organizational changes, new offices, mergers, or major application launches.

Ryan Offman

Ryan Offman

Technology Reporter

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