A firewall is software or hardware that sits between a private network or a single home computer and the Internet and acts like a kind of computer filter preventing unwanted people from entering your system

This is what vicomsoft’s knowledge base says about firewalls found at

“A firewall sits at the junction point or gateway between the two networks, usually a private network and a public network such as the Internet. The earliest firewalls were simply routers. The term firewall comes from the fact that by segmenting a network into different physical subnetworks, they limited the damage that could spread from one subnet to another just like fire doors or firewalls.

A firewall examines all traffic routed between the two networks to see if it meets certain criteria. If it does, it is routed between the networks, otherwise it is stopped. A firewall filters both inbound and outbound traffic. It can also manage public access to private networked resources such as host applications. It can be used to log all attempts to enter the private network and trigger alarms when hostile or unauthorized entry is attempted. Firewalls can filter packets based on their source and destination addresses and port numbers. This is known as address filtering. Firewalls can also filter specific types of network traffic. This is also known as protocol filtering because the decision to forward or reject traffic is dependant upon the protocol used.”