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IP FORWARDING using NAT with IPTABLES

In this example:

• we have a LAN connected to eth0 interface.
• our LAN connects to Internet via ppp0 interface.
• we mask our local lan IP addresses using NAT.

NAT stands for Network Address Translation.

In the console we write these commands:
# iptables -t nat -A POSTROUTING -o ppp0 -j MASQUERADE
# iptables -A FORWARD -i eth0 -j ACCEPT
# echo 1 > /proc/sys/net/ipv4/ip_forward

References:
$ man iptables