This provides for more finely tuned traffic control for resources that have specific network traffic requirements. As with NACLs they apply rules that determine whether traffic to or from a given EC2 instance should be allowed. Security Groups apply to EC2 instances and operate like a host-based firewall. This means less network admin overhead for managers. NACLs are automatically applied to everything within that subnet, so there is no need to apply NACLs to individual resources as they are created. Thus if you want traffic to be permitted both in and out of a subnet, you have to set network access rules for both directions. NACLs are processed in numerical ie serial order. Just because a particular data stream is allowed into the subnet, this doesn’t mean it will automatically be allowed out. NACLs are “STATELESS” which means they require you to create separate rules for BOTH INCOMING AND OUTGOING traffic. They reside on subnets and evaluate traffic based on defined rules which you set, and use these rules to determine whether or not traffic should be allowed to pass through the subnet. NACLs are used to control access to network resources. They filter traffic according to rules, to ensure only authorized traffic is routed to its destination. NACLs and Security Groups (SGs) both have similar purposes. The AWS Network Access Control List (NACL) is a security layer for your VPC that acts as a firewall for controlling traffic in and out of one or more subnets.
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