Squid on IPFire offers five different authentication methods for the configuration via the web interface. Hereby the Local Authentication is Squid-internal, the other authentication options, however, are controlled by an external server.

Local Authentication This is explains Squid's internal authentication on IPFire
Ident Authentication User authentication with identd
LDAP Authentication User authentication with a LDAP Server
RADIUS Authentication User authentication with a RADIUS Server

Note for Germany

Some of the respective laws and paragraphs can be found here: TKÜMV, BDSG, LDSG, TKG, DSVO, TMG.