VPN vs. Proxy: Understanding the Differences

Before comparing VPN vs. Proxy, let us  know both the terms separately first:

What is a VPN?

A virtual private network (VPN) is a technology that creates a safe and encrypted connection over a less secure network, such as the Internet. A Virtual Private Network is a way to extend a private network using a public network such as the Internet. The name only suggests that it is a “Virtual Private Network”, i.e. user can be part of a local network sitting at a remote location. It makes use of tuneling protocols to establish a secure connection.

To understand what a VPN does, you only need to break down the words “virtual,” “private,” and “network:”

    • VPNs are “virtual” because they are a digital service. You don’t need a cable or hardware to use them.

    • VPNs are “private” because they encrypt your connection and let you browse the internet without governments, internet service providers (ISPs), cybercriminals, and other onlookers snooping on you.

    • VPNs are “networks” because they build a secure connection between your device, the VPN server, and the internet.

What is a Proxy?

A proxy server is a computer that acts as an intermediary between your computer and the Internet. Any traffic routed through a proxy server’s will appear to come from its IP address and not from your computer. Your browser connects to the proxy, and the proxy connects your browser to the Internet. Proxy servers communicate with the Internet using one of two different protocols: HTTP or SOCKS.

Proxy servers act as a bridge between the website you are visiting and your computer system. Your web traffic goes through a middle-man, a remote machine that helps you to connect to the host server.

Difference/Comparison: VPN vs. Proxy

Aspect Proxy VPN (Virtual Private Network)
Primary Function Acts as an intermediary for requests from clients seeking resources from other servers. Creates a secure, encrypted connection to another network.
Security Offers minimal security. Does not encrypt data. Provides high-level encryption for all internet activity.
Privacy Hides your IP address but doesn’t encrypt data, leaving it vulnerable to interception. Hides your IP address and also encrypts your data, maintaining privacy.
Protocols Used Utilizes basic protocols like HTTP, FTP, and SMTP. Uses advanced protocols like PPTP, L2TP, OpenVPN, and more for enhanced security.
IP Address Masking Masks user’s IP address with its own. Masks user’s IP address and also encrypts the traffic.
Encryption Does not encrypt traffic. Encrypts all traffic passing through it.
Connection Stability Tends to offer unstable connections. Generally provides stable and reliable connections.
Use Cases Suitable for bypassing geo-restrictions or simple content filtering. Ideal for secure browsing, protecting sensitive data, and maintaining anonymity.
Operating Level Works at the application level (e.g., web browsers). Operates at a network level, affecting all internet traffic.
Anonymity Offers limited anonymity by hiding the user’s IP address. Offers enhanced anonymity through IP masking and traffic encryption.
Speed Can be faster as there’s no encryption overhead. May be slower due to encryption and longer route to the VPN server.
Setup and Use Generally easier to set up and use. Requires installation of VPN software and more complex configuration.
Cost Many proxies are available for free. Quality VPN services typically require a subscription fee.

How Does a VPN Work?

In the communication with the VPN server, the VPN client uses the data encryption method. This helps you to access the data or website that you want to access.

In VPN, the client hides your query from your router and ISP, while the VPN software hides your identity from the webpage or web application that you are using.

It enhances your security when you are using any public WiFi network. VPN services are widely used for Online shopping, banking, or sending official emails using an open network to secure your Data. It also stops your ISP or hackers from spying on your traffic and your online activities.

How Does a Proxy Server Work?

You can use a Proxy server to access geo-restricted websites and pages with the help of your browser. However, unlike VPN, your proxy connection isn’t encrypted. It also acts as a mediator between your computer and the final server. As a result, an HTTP proxy hides your identity from the website and provides privacy but never secures any sensitive data.

Types of VPNs:

Here are some important types of VPNs:

Remote access VPN: A remote-access VPN helps the user to connect to a virtual private network and access all of its services and resources while being remote.

The connection tunnel created between the user and the virtual private network is established via the internet. This makes the connection completely private and secure. This type of VPN is useful for both home and business users.

Site to site VPN: A site-to-site VPN is also known as a router-to-router VPN. It is used mostly by large companies or organizations that have offices in different locations. This helps these companies to connect the network of one office location to the other office location.

OpenVPN: OpenVPN is an open source VPN that allows wide range of encryption algorithms.

PPTP: PPTP is a fast and easy-to-set-up yet very insecure VPN.

L2TP: It is secure and easy to up, but it is slower than OpenVPN.

IKEV2: This type of VPN server is faster compared to PPTP and L2TP. It supports AES 128, AES 192, AES g56. However, it is not supported on many platforms.

Type of Proxy Servers:

Here are three types of Proxy Servers:

HTTP Proxies: These only cater to web pages. If you want to set up your browser with an HTTP proxy, all your browsing traffic will be rerouted through it. They are useful for web browsing and also allows you to access geo-restricted websites.

The HTTP protocol is designed to interpret traffic at the HTTP level. That means it can only handle the traffic that starts with HTTP:// or HTTPS://, i.e., web pages. So it is only good for web surfing. Since it is only handling HTTP requests, so it is faster than either SOCKS proxies or VPN servers.

SOCKS5 proxies: SOCKS5 proxies work on websites but can also be used to access file sharing sites, video streaming services, or online games. However, connecting to an app through a SOCKS5 proxy may be slower. This is because free proxies can have slower infrastructure, fewer configuration options, and less support.

Transparent Proxies: A transparent proxy is a proxy set up on a network to control and monitor web traffic. It’s transparent because most users won’t notice that it’s there (until it blocks them from accessing a page).

Schools, offices, and even cafes use these to restrict access to certain websites, like social media or Netflix. Businesses may use one to keep you focused on your job or make sure you don’t use too much bandwidth.

Advantages & Disadvantages

 

Advantages of using VPN

Here are the pros/benefits of choosing a VPN:

    • VPN software hides your IP address and provides you with a new one.

    • A VPN allows safe use of public WiFi.

    • A VPN tool uses end-to-end encryption to secure your data.

    • Suppose a VPN is installed in your system. In that case, all the Internet activity on your device will remain secure and anonymous.

    • It provides unrestricted access to a wide range of streaming content and services.

    • VPN servers prevent hackers from stealing your personal information as it is encrypted.

    • VPNs work on multiple devices; therefore, you are not restricted to watch streaming services only from computers like Macs or Chromebooks.

    • VPN-friendly phones, Smart TVs, and tablets provide you more choices to watch content online.

    • Internet activity can’t be spied on by ISPs or governments.

    • All Internet activity is masked once VPN is set up on the device.

Disadvantages of using a VPN

Here are some cons/drawbacks of using a VPN:

    • It may slow down your Internet connection.

    • The potential reselling and logging of your activity to third parties.

    • It may create connection-breaking issues.

    • The user will see an expired file if the cache expires time is too long.

    • In the case of many users using the same proxy server, it will slow down the Internet speed.

    • VPNs aren’t free. You need to pay for a good service provider.

    • Your security is only good as the software you’re using, so make sure you do your research before choosing VPN software.

    • VPN services are more expensive compared with proxies.

    • It can be a little slow during peak times.

    • If the VPN provider keeps logs, then these may be obtained by the authorities.

Advantages of a Proxy Server

Here are some pros/benefits of having a proxy server:

    • A proxy server hides your IP address, which provides a solution to remain anonymous.

    • Proxy servers are usually free, so you do not require paying to use one.

    • These types of servers can be faster than VPNs because proxies do not encrypt your data.

    • It helps you control your employees’ Internet usage by configuring your proxy server to deny access to particular websites.

    • A proxy server helps you to guard against malware sites by blocking your access.

    • A proxy server helps you to access geo-blocks services or websites.

Disadvantages of a Proxy server

Here are some cons/drawbacks of using a proxy Server:

    • Your web traffic is not private, as the server owner can see it.

    • Proxies are configured to particular browsers or programs and not the entire network.

    • A proxy server never encrypts traffic or any of your data which puts you at risk.

    • Connection speeds can be slowed down when the proxy server is shared with multiple people.
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