A network-based firewall is a security system that monitors and controls incoming and outgoing network traffic based on predetermined security rules. In the context of cryptocurrency, it helps protect exchanges, wallets, and other platforms from unauthorized access and various types of attacks.These firewalls operate at the network layer, filtering data packets to prevent malicious activities such as hacking, DDoS attacks, and data breaches. By setting strict rules, they can block suspicious IP addresses or limit traffic patterns that deviate from the norm.Implementing a network-based firewall is crucial for maintaining the safety of transactions and safeguarding sensitive user information. Additionally, it assists in compliance with regulatory standards by ensuring that only legitimate traffic is allowed through the system.Overall, the use of a network-based firewall enhances security measures and instills confidence among users in the safety of their cryptocurrency assets.