I often read suggestions to use something like Tailscale to create a tunnel between a home server and a VPS because it is allegedly safer than opening a port for WireGuard (WG) or Nginx on my router and connecting to my home network that way.
However, if my VPS is compromised, wouldn’t the attacker still be able to access my local network? How does using an extra layer (the VPS) make it safer?
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That depends on your setup. I terminate my wireguard tunnels on my opnsense router, where I have explicit fw rules for what the vps hosts can talk to.