To turn Raspberry Pi into a Wi-Fi router capable of serving internet to multiple clients:
- What hardware do I need?
- What software components one shall create to run it?
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It is possible. However, the answer to "is it practical?" would depend on your definition of multiple.
You need to have a Wi-Fi USB card which has allows/provides AP mode. Once you have it attached then you can install and configure
hostapd and I am certain that someone must have documented the configuration process online in detail. This may involve
iptables modification/entries as well.
Feel free to comment in case of query/doubt. I have worked on a project (which was for traffic monitoring) in which my client had the setup done and I would send him the cross-compiled binaries. Therefore, I am certain that this can be done but again, the practicality of the solution would depend on many factors.