What Is a Proxy Server, and How It Works?

Raji Oluwaniyi  - Former Tech Expert
Last updated: August 13, 2024
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Read this article to discover what is a proxy server, how set it up, and its advantages and disadvantages.

THE TAKEAWAYS

A proxy server is a gateway between your device and the network that adds an extra layer of security by making you anonymous while browsing online. Read our complete article to learn more about the proxy server and how it works.

A proxy server is a router or system that links an internet user and the internet. It is a technology that masks users’ IP addresses and hides their online identity and location. The primary aim of a proxy is to ensure that users’ data traffic cannot be traced back to them.

Other benefits include access to geo-restricted content on the internet and online security. However, it has drawbacks—a proxy server does not provide 100% security nor guarantees online anonymity.

Continue reading this article to learn more about how proxy servers work, their safety, and the different kinds.

How does a proxy work?

It is an intermediary between your local device or network and a broader network—usually the Internet. It is an external server, often introducing an additional step in the connection process.

When you connect to the internet directly (without a proxy server), your data traffic moves directly from your device to the global network. As you load a website, the data moves from your device to your internet service provider’s (ISP) router before moving to the requested website’s server. The site’s response also follows the same route back to your device.

But when you connect to a proxy server, your data traffic moves through a different route. First, you connect your device to the proxy server. Then, the proxy sends your request to the requested destination online. The proxy server hides your IP address from other websites during this process. Instead of your IP address, they see the proxy’s IP.

Generally, they transport data through a special data tunnel. However, proxies have additional functionalities. For example, a proxy provides extra online security.

Note that there are different proxies, each with a specific function. For example, web proxies work with a web browser. However, you can also configure a web proxy on your router to redirect all your data traffic through the proxy server automatically. As you proceed in this article, you’ll find more details about the different kinds of web proxies and their special functionalities.

As highlighted earlier, most proxy servers are unreliable enough to guarantee online privacy or protect your data. Hence, connecting to a VPN is advisable to remain anonymous and safe while you use the internet. There are numerous VPN service providers in the market today. However, we recommend ExpressVPN, NordVPN, and ExtremeVPN for premium services.

Different kinds of proxies

There are different types of proxies because of the different classification factors. For example, you can classify proxy servers based on the number of users a proxy can accommodate. While a large group of internet users can connect to public proxies, only a user or group of users can connect to a private proxy. It’s usually harder for third parties to decipher which data belongs to a particular user on a public proxy because of the number of people sharing the proxy’s IP.

You can also classify proxies based on their unique functions. The different kinds of proxies under this category include:

  • Filtering proxies
  • Reverse proxies
  • Caching web proxies
  • CGI proxies

Another classification yardstick is the level of privacy that a it offers. The types of proxies based on this classification include:

  • High anonymity proxies
  • Anonymous proxies
  • Transparent proxies

1. Filtering proxies

Some servers can filter the content of websites and pages. It also serves as a useful tool for enforcing online censorship and restrictions like the network server in Russia and the Great Firewall of China. They filter content restrict users’ freedom online—they cannot access flagged or prohibited content.

Other filtering proxy servers are limited to customizing web pages to a specific user or audience. A practical depiction of this is when you automatically get the desktop version of a website when you load it on your PC. You’ll notice a few differences when you open the same website on your tablet or mobile phone. Most ISPs utilize these proxy servers to mask their connection from viruses and other harmful or malicious content.

In conclusion, a filtering proxy server blocks users from accessing certain content on the internet. Although this works against internet freedom, it increases online safety.


2. Reverse proxies

As the name implies, a reverse proxy doesn’t function like a regular proxy server. While regular proxies protect users’ data when using the internet, reverse proxies protect web servers from malicious threats and attacks.

Websites and servers often use reverse proxies to safeguard their online data. This allows them to decide whether to grant or deny access to certain web pages. For example, a bank can use a reverse proxy to ensure that an unauthorized stranger does not gain access to a client’s account, the same way a client won’t access another client’s account.

Websites also use reverse proxies to cache static pages so the server doesn’t overload too quickly.


3. Caching web proxies

Caching web proxies are the most commonly used proxy servers. This proxy server saves a copy of every website you open on your device. You’ll notice that web pages load faster and more securely when you connect to a caching web proxy server. This is because the proxy has saved a copy of the website.

When you load a website via a caching web proxy, it first searches its local file (cache) to find the website. If it finds the site in the cache, it sends the data back to you without searching the internet.

However, if it doesn’t have a saved copy, it gets the information online and sends it back to you. During this process, it saves a website copy for future reference.

A proxy’s cache doesn’t last forever. It becomes empty once its lifespan elapses. Typically, content on a proxy’s cache clears based on how long the data has stayed in the cache, the request frequency, and the size. Common cache algorithms that determine how a cache is emptied include Least Frequently Used (LFU) and Least Recently Used (LRU).


4. CGI proxies

CGI proxy server is a special type of proxy. CGI proxy functions like a website, allowing users to access a certain webpage quickly. Many websites often use CGI or PHP to run properly. When you connect to a CGI proxy, you can access websites or platforms blocked by businesses, schools, and even the government. You can also enjoy a level of anonymity because it masks your IP address.


5. High anonymity proxies

You can also classify proxy servers based on the level of anonymity that they offer users. This proxy server provides the highest level of anonymity you can get from a proxy. It’s hard for third parties to determine that you’re connected to a proxy server when using this proxy.

It conceals your IP address and is completely invisible for websites. Unlike regular anonymous proxies, high anonymity proxies are undetectable. Although it’s the closest to a VPN regarding anonymity, it doesn’t offer the security and safety that a VPN guarantees.


6. Anonymous proxies

Although an anonymous proxy reveals that it’s a proxy server, it doesn’t show users’ actual IP addresses. This kind of proxy provides a certain level of protection against malicious threats and attacks.

However, one of the drawbacks of anonymous proxies is that you cannot use the proxy to unblock content on Netflix. Netflix has advanced protocols that can detect proxy connections and restrict you from accessing their content library.


7. Transparent proxies

A transparent proxy doesn’t hide users’ IP addresses. It provides no form of anonymity. Transparent proxies display themselves as proxy servers, revealing users’ IP addresses to websites and third parties. They are typically caching proxies.


Pros and cons of a proxy server

Here’s a table outlining the advantages and disadvantages of using a proxy server.

Pros
  • Bypasses other proxy servers or geo-blocks
  • Protection against potentially harmful codes
  • Allows users to block certain content
  • Improves internet speed and connection
  • Hides users’ IP address
Cons
  • No complete anonymity
  • No encryption service
  • May not unblock all blocked pages
  • Possibility of IP address leak

What are network proxy settings?

You can configure each application on your device that supports proxy servers separately to use your proxy. Typically, you’ll find the settings in the network settings section.

Unlike other web browsers, Mozilla Firefox supports proxy servers natively. Also, almost every web browser and application requiring an internet connection or network is compatible with regular proxies.

However, only a few devices can allow you to set up a global HTTP proxy. When configuring this, your device sends all other traffic directly without using the proxy’s IP. Hence, it’s not the best solution for complete anonymity.

Depending on your operating system, you’ll find the proxy settings in different places. For example, on macOS and Windows, you’ll find proxy settings around other network settings in “System Preferences” and “Wi-Fi Settings.” However, web browsers often provide their independent proxy settings.

Before configuring a proxy server, you need the IP address, hostname, port, and connection type.

How to check your proxy settings

Once you’re done setting up the proxy server on your device, you can confirm that you’ve done it correctly by checking your external IP address. To check your IP address, you can type “what is my IP address” on Google or your preferred search engine to see the channel through which your data traffic reaches the internet.

If you seek optimum privacy from third-party surveillance, ensure you’re connected to a SOCKS proxy. Also, ensure connecting your entire device, including every application you open, to the proxy server. Note that the fact that your web browser is connected to the proxy doesn’t mean other applications on your device are also connected.

How to set up a proxy

Configuring your device to your proxy server is a process that requires technical knowledge. However, it is relatively easy. We’ll walk you through connecting to the SOCKS proxy since it’s the most secure proxy protocol.

You need an account on a Linux server with SSH access to set it up correctly. However, you can opt for Linode or DigitalOcean, as they sell affordable virtual private servers. You can also turn to paid proxy service providers.

Make your own Linux-based SOCKS proxy

You can easily create your SOCKS proxy server with access to a Linux account or the affordable alternatives mentioned earlier. All you need on the server is the SSH daemon, which is most likely pre-installed for remote administration.

Here’s how to make your Linux-based SOCKS proxy:

  • Open a terminal on your device. You can use Command Prompt or PowerShell if you’re using Windows—Microsoft has pre-installed an OpenSSH client. Open the Terminal.app if you’re using macOS. Open your preferred terminal emulator on Linux.
  • After opening the terminal, run this command: -i ~/.ssh/id_rsa -D 1234 -f -C -q -N user@domain. Here’s a description of what each argument does:
    • -i: Directs the SSH client where to find your SSH key used to sign in to the remote server. Note that you don’t need this part if you use password authentication.
    • -D: Instructs SSH that you want a SOCKS proxy on the specified port. You’ll see that we used port 1234 in the command above.
    • -f: Moves the proxy creation process to the background so that you can run other commands in the terminal.
    • -C: Activates compression so you don’t waste your internet bandwidth.
    • -q: Deactivates debugging and log messages in the terminal.
    • -N: Informs the SSH that you’re not sending the command to the server. Instead, you’re using it as a proxy. 
    • user@domain: This is your username on the server and the server’s IP address (or hostname).
  • Then, check your computer network or browser settings to configure a SOCKSv5 proxy. Here’s how to do that using Firefox:
    • Locate “Preferences” from the menu button.
    • Scroll down and select “Network Settings.”
    • Choose “Manual Proxy Configuration.”
    • Type “localhost” as the SOCKS host, and use the port you used earlier.
    • Choose “Proxy DNS when using SOCKSv5.”
    • Tap “OK” and confirm your settings.

Is a proxy server safe?

You must consider many factors if you want to use a proxy server and remain anonymous while using the internet. Opt for a top VPN if you can instead of using a proxy server. However, if you must use a proxy server, consider the following to ensure safety.

Configure your proxy correctly

You must configure your proxy server to enjoy a decent level of privacy. Although setting up a proxy server can be quite technical, it’s not always up to you to ensure a proper configuration process. The owner of the proxy server must be reliable and have applied the right knowledge and strategies when setting up the server. That’s only when you can confirm that you’ve configured the proxy correctly.

Proxy servers also require thorough and proper maintenance to function properly. Many proxy owners, especially those offering the service for free, don’t maintain the service at all. Lack of proper maintenance or oversight often leads to IP address leaks.

Who owns the proxy server?

Another vital factor to consider is the owner of the proxy server. You must ascertain they’re reliable and have good intentions for creating the proxy. Most times, owners of free proxy servers are malicious parties looking to gather the personal details of unsuspecting users or make money through ads or selling users’ data to third parties.

Setting up and running a proxy server is quite expensive, and many owners devise strategies to earn money from it. Some spread viruses and malware on their servers, add pop-up ads to web pages, and sell users’ data.

Does the proxy allow for HTTPS?

You require a secure connection if you want optimum security online. Unfortunately, a proxy server does not encrypt users’ internet connection. You become highly susceptible to hackers, strangers, and third parties if you don’t have an extra layer of protection while using the internet.

They can steal sensitive information like your payment details and login information. Even the government can spy on your activities to enforce censorship laws.

You can avoid this by using the HTTPS version of websites, often regarded as the secure version. Many proxy servers are incompatible with HTTPS, removing a crucial layer of online security. Note that websites with HTTPS aren’t always entirely safe.

The HTTPS only signifies that your connection with the websites was established securely. This does not mean the website is safe; it could be filled with malware or dangerous codes. For example, you may find yourself on the HTTPS version of a phishing website.


Proxy or VPN

As mentioned earlier, a proxy server only offers half the required services. It’s not 100% safe, nor does it provide complete anonymity. That’s why you should use a VPN instead of a proxy server. Although a VPN reroutes your data traffic like a proxy server, its services extend beyond that.

A VPN redirects your data traffic through an encrypted tunnel, guaranteeing safer and more secure browsing. Top VPNs also have a kill switch, reducing the chances of a data or IP address leak to zero.

Another reason you should pick a VPN over a proxy is that VPN connections are usually faster than proxies, especially when you want to stream your favorite movie or download a large file. You can combine your VPN with a top antivirus program for optimum security and protection.

Many VPN providers enforce a no-log policy, meaning they don’t store users’ information or browsing data. Regardless, using a reliable and notable VPN service provider is crucial. This is because some VPN providers promised not to log users’ information, but it turned out they were doing that secretly.

Top VPNs you can consider include ExpressVPN, NordVPN, and ExtremeVPN. They are trustworthy VPNs guaranteeing premium services.

The best VPN to consider instead of a proxy server

Examine an overview of the top VPNs in the market today below.

1. NordVPN

NordVPN is a top VPN service. It has a global network of 5,500 servers in over 60 countries with top IP detection technology. It has a special feature called the NordLynx protocol. This technology allows users to experience ultra-fast connection speed. NordVPN’s subscribers can connect to a dedicated IP address.

The VPN utilizes a kill switch that turns off all internet activity when there’s an internet connection interruption. NordVPN has other security features like AES 256-bit encryption protocol and split tunneling. If you need more assurances, NordVPN has a “Double VPN” mode that allows you to get double the protection for one payment.

Pros
  • Owns military-grade encryption method
  • Boasts a dedicated IP address
  • Allows unlimited P2P sharing
Cons
  • Some server connections may be slow

Read NordVPN’s extensive review


2. ExpressVPN

With over 3,000 servers evenly dispersed across 160 locations in about 94 countries worldwide, ExpressVPN provides ultra-fast connection speed for streaming and downloading files. It provides a Smart DNS feature that allows subscribers to stream and download content on Amazon Prime Video, Hulu, Netflix, HBO Max, and Disney+ from anywhere worldwide.

It makes users immune to data breaches and privacy threats. The VPN uses the solid military-grade AES-256 encryption protocol. This advanced security protocol guarantees advanced information protection.

ExpressVPN has three subscription plans that start at $8.32 monthly. You can also test the VPN service risk-free with the 30-day money-back guarantee.

Pros
  • Does not collect or store users’ sensitive data
  • Accepts anonymous payments like Bitcoin
  • Has advanced security protocol
Cons
  • A bit expensive than others

Read ExpressVPN’s extensive review


3. ExtremeVPN

ExtremeVPN is a top and affordable VPN service that can bypass Netflix geo-blocks anytime and from anywhere worldwide. It provides users with a premium streaming and gaming experience while guaranteeing privacy and security.

Although it adopts an automatic protocol selection system, subscribers can personalize their experience. The protocols on the Preferences page include IKEv2, SSTP, WireGuard, L2TP/IPSec, and OpenVPN.

You can download the ExtremeVPN app on iOS, Android, macOS, and Windows devices. You can choose the monthly plan ($10.59 monthly), the six-month plan ($5.15 monthly), or the yearly plan ($3.29 monthly). Any plan you opt for can cover up to 10 simultaneous device connections.

Pros
  • Boasts an extensive server network
  • Has blazing-fast servers all around the globe
  • Offers a 7-day free trial
Cons
  • Lacks a Double VPN mode

Read ExtremeVPN’s extensive review


How proxy servers unblock streaming websites

When you connect to a website through a proxy server, it fetches resources on your behalf while masking your IP address. This prevents the site from directly seeing your location or device information.

Streaming platforms aim to detect and block IP addresses and regions engaging in unauthorized access to copyrighted content. By routing your connection through an anonymous proxy server, you can bypass geo-restrictions and obfuscate your identity from free streaming sites online that usually try to curb piracy.

Proxies grant access to blocked streaming content by providing an encrypted tunnel and new IP configuration that obscures your true details. While proxies aid accessibility, caution is needed as they also raise legal and ethical concerns regarding copyright laws.

FAQs

Not exactly. VPNs are legal in many countries on the condition that you don’t use them to carry out illegal activities. This same concept applies to a proxy server. First, confirm that there are no laws prohibiting the use of a proxy, and then refrain from using it for illegal acts, and you’ll be fine.

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About the Author

Raji Oluwaniyi

Raji Oluwaniyi

Former Tech Expert
29 Posts

Raji Oluwaniyi is a well-rounded content creator who enjoys researching, writing, and editing a wide variety of content with minimal oversight. Having written tech-related and hard-core cybersecurity content for three years, he has extensive experience in this field. Currently, he is a content writer at Privacysavvy. By writing value-oriented, engaging content, he hopes to impact a wide audience.

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