How the FTP Server Works
FTP service is controlled from the /etc/inetd.conf file and is automatically invoked whenever someone connects to the FTP port. (Ports are logical associations from a network connection to a specific service. For example, port 21 associates to FTP, port 23 associates to Telnet, and so on.) When a connection is detected, the FTP daemon (/usr/sbin/in.ftpd) is invoked and the session begins. The default /etc/inetd.conf file installed with your Red Hat distribution contains the necessary line for this step to occur.
After the server is invoked, the client needs to provide a username and corresponding password. Two special usernames—anonymous and ftp—have been set aside for the purpose of allowing access to the public files. ...
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