What is a VPN gateway and why should I have one? from buzai232's blog

What is a VPN gateway and why should I have one?
A virtual private network (VPN) gateway is a device that securely connects two or more computers, computer systems, or other VPNs together over long distances. This allows a private connection to be secured and encrypted against hackers. The gateway creates networks that can be worldwide in scope. @$#f$234
A VPN is a cost-effective alternative for a corporation in need of a private network between two remote locations. This is because a VPN uses the internet to carry data between end points. The corporation only needs to own or rent third-party gateway hardware at each end of the link.
In addition to business use, personal VPNs are becoming more popular as a means of protecting personal data such as banking transactions, passwords, emails, or other legal matters from thieves and hackers. The VPN gateway provides a proxy IP address, encrypts and decrypts information, allows a person to mask their true location and also access blocked websites.
A VPN gateway is an essential component of the VPN. It can be a server, router, firewall or another device with networking and data transmission functions. However, it is usually a router, installed at both the core and remote sites. Gateways filter VPN traffic, blocking some traffic while allowing other traffic, and routing the information through the internet to the end destination.
They do these tasks using routing and tunneling protocols, IP address assignment, name resolution, verifying legitimate users, encrypting/decrypting and encapsulating the data to provide security against prying eyes. They also perform integrity checks on the data, ensuring no data is lost in transit. Gateways are also aware of the network paths between the endpoints and can dynamically change the route a data packet takes if some portion of the internet is unavailable.
VPN service providers offer free or paid VPNs. Paid VPNs are the preferred option as they offer more services than the free VPN providers.
VPN devices
VPNs operate at level 3 of the OSI model, which means the device is between the actual physical transmission medium (copper or fiber optic cables) layer and the layer that organizes the data for transmission. The VPN device will take the data, analyze it and determine what actions to take with the data. Routers are usually the preferred device, but some level 3 switches, firewalls or other specialized devices, such as hardware VPNs, can perform the same functions.

VPN security
VPNs use dedicated connections and encryption protocols to secure the data they transmit. In addition to IPSec and L2TP mentioned above, there are others such as Secure Sockets Layer (SSL), Transport Layer Security (TLS) and Secure Shell (SSH). Using these connections and protocols means that even if a hacker got some private information, they would still be unable to read the data due to the encryption.
IPSec operates in two modes: Transport mode, encrypting the message, or Tunneling mode, which encrypts the entire packet. L2TP generates a tunnel, and along with IPSec encrypting the data, creates a highly secure VPN. SSL and TLS operate by using a “handshake” between the two systems to create a secure connection. SSH creates both the tunnel and the encryption of the data.

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