Nat table

This table should only be used for NAT (Network Address Translation) on different packets. In other words, it should only be used to translate the packet's source field or destination field. Note that, as we have said before, only the first packet in a stream will hit this table. After this, the rest of the packets will automatically have the same action taken on them as the first packet. The actual targets that do these kind of things are:

The DNAT target is mainly used in cases where you have a public IP and want to redirect accesses to the firewall to some other host (on a DMZ for example). In other words, we change the destination address of the packet and reroute it to the host.

SNAT is mainly used for changing the source address of packets. For the most part you'll hide your local networks or DMZ, etc. A very good example would be that of a firewall of which we know outside IP address, but need to substitute our local network's IP numbers with that of our firewall. With this target the firewall will automatically SNAT and De-SNAT the packets, hence making it possible to make connections from the LAN to the Internet. If your network uses 192.168.0.0/netmask for example, the packets would never get back from the Internet, because IANA has regulated these networks (among others) as private and only for use in isolated LANs.

The MASQUERADE target is used in exactly the same way as SNAT, but the MASQUERADE target takes a little bit more overhead to compute. The reason for this, is that each time that the MASQUERADE target gets hit by a packet, it automatically checks for the IP address to use, instead of doing as the SNAT target does - just using the single configured IP address. The MASQUERADE target makes it possible to work properly with Dynamic DHCP IP addresses that your ISP might provide for your PPP, PPPoE or SLIP connections to the Internet.