Difference between Proxy and VPN

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Proxy

A proxy server acts as an intermediary between the your computer and the rest of the web. When you connect to a proxy server, traffic from your browser is re-routed and made to appear to come from the proxy server's IP address. This masks your IP address, giving you some anonymity and removes any geolocation or censorship restrictions imposed on you. Proxies don't provide encryption to any data passing through them so they can accept and handle more connections simultaneously compared to a VPN connection.

Our Proxy Servers use the HTTP(S) protocol, which is used to load websites. Proxies cannot be used with some sites that use protocols that the proxy cannot handle. A good example is BBC iPlayer. For sites that are incompatible with proxies, we recommend using a VPN. Since your subscription comes with both proxy and VPN access, you don't have to pay extra to use VPN.

VPN

VPN stands for Virtual Private Network and this technology is far more complex than proxy servers. VPNs not only hide your real IP address, but they encrypt all the traffic from your computer to the desired destination. This is achieved through the use of security protocols such as PPTP and OpenVPN. When you connect to the VPN, a VPN tunnel between your computer and the VPN server is created. All traffic from your computer is encrypted before it heads out and vice versa. This makes VPNs ideal for protection from prying eyes and surveilance agencies.

VPNs also secure your data when using public WiFi networks which have become hotspots for black hats and cyber criminals to steal your data and perform identity theft crimes.

This table summarises the above info: http://getfoxyproxy.org/vpn/proxy-or-vpn.html