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VPN vs Proxy: what is the difference?
In short: A VPN creates an encrypted tunnel for all traffic from a device to a VPN server, hiding it from the local network. A proxy relays requests for specific applications, usually for filtering, caching or changing the apparent location, and does not necessarily encrypt anything.
VPN vs Proxy in one sentence
A VPN encrypts and tunnels all of a device’s traffic, while a proxy forwards traffic for particular apps, often without encryption.
Side-by-side comparison
| Feature | VPN | Proxy |
|---|---|---|
| Scope | Whole device (or chosen apps) | Usually one app or browser |
| Encryption | Yes, by design | Not necessarily |
| Works at | Network layer (IPsec, WireGuard, SSL VPN) | Application layer (HTTP/SOCKS) |
| Typical business use | Remote access to the office, site-to-site links | Web filtering, caching, inspection |
| Typical home use | Protecting traffic on public Wi-Fi | Rare; sometimes to change location |
| Speed | Small overhead from encryption | Depends on the proxy server |
What is VPN?
A virtual private network builds an encrypted tunnel between your device and a VPN gateway. Businesses use it so staff can reach internal systems safely from home; site-to-site VPNs join offices together.
What is Proxy?
A proxy server makes web requests on your behalf. Companies use forward proxies to filter websites and scan downloads; websites use reverse proxies and CDNs in front of their servers for speed and protection.
Which one should you use?
For privacy on untrusted Wi-Fi or remote access to work, use a VPN. For web filtering and control in an organisation, use a proxy or secure web gateway. Remember a commercial VPN moves trust from your local network to the VPN provider; choose one carefully.
Common mistakes and myths
- "A VPN makes me anonymous." The VPN provider and the websites you log in to still know a lot.
- Using free proxies that may log or alter your traffic.
- Exposing an unpatched VPN gateway to the internet: VPN devices are a top target.
Learn more
Key takeaways
- VPNs encrypt all traffic; proxies relay specific apps.
- Businesses use VPNs for remote access and proxies for filtering.
- Patch VPN gateways quickly.
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