Proxy vs VPN — How are They Different?

In 2020, it was reported that 31% of internet users use VPNs. A global survey also found that 7 out of 10 respondents have taken measures to secure their online privacy.

This increasing demand for online privacy tools can be attributed to the growing concern about online privacy.

Some are even thinking that achieving complete privacy is close to impossible nowadays.

Out of the most popular solutions, VPNs are best known for protecting users’ internet privacy, though proxies can also achieve the same results.

Deciding which one to use can be challenging without knowing their key differences.

In this article, you will learn the differences between proxies and VPNs to help you decide which is best based on your specific use case.

Read to find out more.

Proxy Servers and VPNs: What Are They?

VPNs and proxies share the same function – they are both used to hide users’ IP addresses by rerouting traffic to a mediating server.

Here’s a quick description of what VPNs and proxies are:

In essence, VPNs and proxies have the same purpose, although they are doing it differently.

The following sections will provide an in-depth presentation of VPNs and proxies.

Understanding What a VPN Is

As mentioned, VPNs or Virtual Private Networks, offer a secure connection through an encrypted tunnel – this is, in fact, the main difference between VPN and proxy.

Let’s start by understanding how VPNs work.

How VPNs Work

Most VPN providers require users to install an application to use their service. VPNs can also work as browser extensions.

Once installed, the VPN app works to encrypt the device’s internet traffic, then reroutes them to the VPN server.

This process usually occurs at the operating system's level (except for browser extensions). It means the device’s incoming and outgoing traffic is encrypted/rerouted to the VPN server. 

As a result, even the ISPs (Internet Service Providers) will not be able to track and read VPN users’ online activities.

However, ISPs still know if a client is using VPN as they can see the traffic is being routed to a VPN server.

VPN Pros and Cons

Strong encryption is VPN’s main advantage, but it also has its drawbacks.

Here is a quick rundown of the pros and cons of VPNs:

When To Use a VPN

VPNs are great, but it does not mean that everyone needs them. Here are some of the everyday use cases that you should consider:

Securing Connection to Public Places

Full web traffic encryption prevents man-in-the-middle (MITM) attacks and any form of data interception.

VPNs are the best option for anyone who usually connects to open networks such as public wifi hotspots.

Circumventing Georestrictions of Online Content

Most VPN providers offer location targeting, letting users choose a corresponding server for a given location.

This allows users to access exclusive regional content on streaming sites or localized websites.

Overcoming Browsing Restrictions on Establishments

Browsing restrictions are often applied within internal networks such as in libraries, schools, and workplaces.

These restrictions usually work by blocklisting certain sites either through a DNS server or a proxy server.

VPNs can circumvent these restrictions by rerouting the requests to the VPN server before passing them to the actual target website.

Now, let’s to defining what proxies are.

Defining Proxy

Proxies are essentially substituting IP addresses. By rerouting traffic to a proxy server, a device client also adopts a specific proxy IP instead of its default one.

Proxy configurations are usually done at an application or web browser level. System-wide proxy configuration is also possible on most popular operations systems such as Windows, MacOS, and Linux.

Types of Proxies

Here is a table of the different types of proxies and their uses:

Proxy Use Cases

Proxies are the lighter versions of VPNs. Proxies are generally cheaper than VPNs, so they are best used for tasks that require multiple IP addresses.

To give you an idea, here are just some of the common use cases of proxies:

Circumvent Geo-restrictions

Proxies do the same function as VPNs in spoofing an IP location to circumvent regional restrictions online.

The only difference is proxies do this without the added security of high-level encryption.

Web Scraping and Crawling

Websites prefer to keep their data private, so they usually block IP addresses sending too many web requests at a given time.

This is where proxies come into use. Lists of proxies can be collected to do “IP rotation” to avoid being blocked while scraping data from sites.

Managing Multiple User Accounts

Managing multiple accounts on a single device is also made possible by the use of proxies.

Proxy management tools can be configured to handle simultaneous connections using different proxy addresses.

This setup will allow users to manage multiple accounts on highly sensitive websites that use anti-bot measures.

Differences Between Proxies and VPNs

To help you more in deciding which one to use (VPNs or proxies), let’s make comparisons based on some important criteria: 

Encryption and Security

As mentioned, VPN connections are encrypted, but proxies are not. Proxies can only hide your IP, but the rest of the traffic data remains the same.

On the other hand, VPN encryptions can be as complex as 246-bit. VPN providers also offer various encryption systems.

Privacy

VPNs and proxies offer the same anonymizing factor, hiding users’ IP addresses.

As long as the browser does not save or leak any user data (such as cookies), anyone can be anonymous using either of the solutions.

However, an encrypted connection is still preferable to maintain privacy and security.

Coverage

VPNs usually affect the device’s whole system, while proxies only reroute traffic for a specific app or software.

You can also opt to limit the VPN’s scope to a single browser by using only the browser extension version of a given VPN service. This is the same with proxies, as you can also configure them to work for the whole operating system.

Speed

Without encryption, proxies are generally faster than VPNs. However, speed also depends on other factors, such as the quality of the VPN or proxy servers, and the location of the target host servers.

Ease-of-use

VPNs are generally easier to use as it only involves the installation of a given VPN application. On the other hand, proxies need manual configuration, either at the level of the operating system or a specific application.

Price

VPNs are pricier than proxies. In the case of proxies, you can opt to lease only a certain number of proxy IPs. With VPNs, subscriptions come with many features that add to the service price.

Legality

Both VPNs and proxies are legal in most countries, but how you will use them is a different matter.

For example, if you use a VPN or a proxy to circumvent geo-restrictions on certain websites, you are likely violating the platform's Terms of Use.

Agreements to these terms can be binding under any jurisdiction’s “Contract Law.”

The use of VPNs and proxies in downloading copyrighted content or scraping personal data may also violate copyright and privacy laws such as the Digital Millenium Copyright Act (DMCA) and the California Consumer Privacy Act (CCPA) in the US.

Proxy or VPN: Which One is Better?

VPNs score more on the important criteria, but it does not mean it is always the better option.

Deciding on which one to use ultimately depends on the specific use case you’re aiming for.

You can get the most out of these solutions so long as you stay mindful of the information given in this article. Choosing the right solution based on your needs will save you valuable time and money.