Are you worried about employees leaking private information as they browse the web? If so, you’re probably considering setting up a Virtual Private Network (VPN) or proxy server.
Proxies and VPNs both improve online privacy but in unique ways. Proxies act as intermediaries between users and the internet, while VPNs secure networks by encrypting traffic and engaging the user’s device, making VPNs more robust in safeguarding network and user privacy.
Let’s explore the VPN vs proxy contest in more detail and help you find the ideal privacy solution.
VPNs are networks that route traffic through private servers before sending it to its destination. When users log onto their VPN client, the service uses special protocols to create a “tunnel” connecting data sources and destinations.
VPNs offer a couple of important security and privacy services:
VPNs are usually paid services. A third party VPN provider will maintain servers around the world and manage encryption. Users log on via clients which can be integrated into web browsers if desired.
VPNs also work at the operating system level. This means they cover all traffic leaving or entering a network. They are not restricted to single apps.
Learn more about a VPN in our Learning Center.
Proxies also use external servers. These proxy servers route traffic from user devices and give each data packet a new IP address. As far as outsiders are concerned, user traffic comes from the proxy's remote server. This is a major benefit when accessing geo-restricted web content.
On the downside, proxies do not feature data encryption. They can anonymize the identity of a user, but not the data they send. Sensitive data remains exposed to attackers, making proxies unsuitable for a business internet connection.
Proxies also tend to be associated with individual applications. They process traffic from web browsers or streaming games. But proxies do not provide all-round privacy at an operating system level.
There are various different types of proxy server, and each has its own use cases:
We now know the main features of proxies and VPNs. But here’s the all-important question. How do VPNs and proxies differ and which one should you choose?
Encryption is the most important difference between VPNs and proxies, and probably the key consideration for business users. When you use a VPN, all of your internet traffic is encrypted.
The best paid providers use AES-256 encryption that has no known weaknesses. Encrypted data will be off-limits to thieves, limiting the risk of leaking commercial data. A remote work VPN will also lock down connections between home workers and central offices. So you can establish a secure connection between workloads and user devices.
Proxies never encrypt traffic. All they do is re-route packets and provide IP address anonymization. That can be useful when accessing blocked web pages. But data security will be relatively weak.
VPNs function at the operating system layer. They apply encryption and anonymization to all data passing across network boundaries. Businesses do not have to install software on individual apps or configure settings for each service. Privacy controls apply over-the-top – a more convenient solution.
Because they work on the application level, proxies are used with specific software or services. They won’t cover all network connections, potentially leaving security gaps.
Proxies don’t need to encrypt data as they route it around the world. VPNs do. This imposes extra bandwidth overheads. VPNs may be slower as a result, sometimes making them unworkable for streaming tasks.
However, the best VPNs match proxies in terms of speed. Free proxies generally use cheaper, less extensive infrastructure. So while they use more basic technology, they may actually be slower than VPN alternatives.
Proxies have low maintenance costs for providers and are usually free for users. At least, they are free at the point of use. As with most free services, proxy customers are the product. Expect your data to be stored and sold to third parties for marketing purposes.
There are free VPNs as well. However, paid services are recommended for business customers. Paid VPNs charge small fees and provide higher quality encryption, speeds, reliability, and anonymization. They also have stricter anti-logging policies. Your data should remain private and won’t be resold.
Unlike most proxies, good VPNs combine these services with customer support. All-in-all, they deliver much better online privacy for high-end users.
As a general rule, VPNs are more reliable. Your connection will drop less frequently. Speeds will be more regular. A host server around the world should be available at all times.
Proxies can be very reliable, but do not have such a strong reputation. Expect connections to drop every now and then – especially when you are using free proxy services.
VPNs also offer more reliable DNS leak protection. Poor-quality proxies are likely to leak DNS information to your internet service provider or the websites you visit. This completely compromises the privacy service.
As you can see, there are plenty of divergences between VPNs and proxies. But it’s important to remember the similarities as well.
By now you probably have an idea of which privacy solution to choose. Most businesses should opt for virtual private networks over proxies. A proxy server offers minimal security features. The service may be free of charge and fast, but data sent via a proxy server is always vulnerable.
By contrast VPNs encrypt data – usually at levels that protect information from any attackers. The best VPNs use military-grade encryption. Some offer add-ons like Double VPN protection that makes it hard to tell whether users are even employing a VPN.
VPNs come in business-friendly forms. You can set them up for remote workers, link departments together, and integrate VPNs with cloud computing. If you choose a reliable provider, you can talk to support staff and optimize both security and privacy. This just isn’t available with any proxies.
A proxy, utilized by multiple users simultaneously, can lead to reduced connection speeds, with free proxies tending to be even slower. Distance from VPN servers can also affect connection speeds adversely. Yet, choosing a VPN provider equipped with advanced technology and proper maintenance protocols ensures that any potential delays in connection speeds are minimized and virtually imperceptible.
Nordlayer can help you implement a secure, fast, and business-friendly VPN solution. Our software-based products include VPN services powered by the NordLynx protocol. This combines speed and cutting-edge encryption.
NordLynx stands out with its streamlined, resource-efficient design, delivering robust security without compromising speed or device performance. Ideal for enhancing business communications and productivity, NordLynx is the key to a superior, unyielding, and swift internet experience.
To enhance your connections, create site-to-site setups to cover every workstation. Cater for remote workers, and implement Single Sign On that extends protection to all network assets. To find out more, get in touch with the Nordlayer team today.
No. Proxy and VPN servers both route internet traffic and assign anonymous IP addresses. VPNs add encryption to data transfers. They also act at OSI layers 3 or 4, while proxies operate at layers 5 to 7.
Probably not. VPNs deliver the same services as a proxy server, with better security, performance, and support. In some cases, you could use a VPN to work around a transparent proxy if you use one to regulate internet activity. But this is relatively rare.
Maybe, but how can you be sure? Free proxy services are notorious for leaking and selling data. Users should assume that someone is tracking their activity. A proxy server should never be used to send sensitive data.
Proxies are often faster than VPNs as they do not need to apply encryption. However, speeds also depend on the number of proxy server users, the number of available servers, and the quality of those servers. In many cases a well managed VPN will actually be faster than a cheap, poorly run proxy.
Neither. Tor is a network of nodes located around the world. These nodes are free to access. They act as a relay, bouncing traffic between nodes until it reaches its destination. It has some VPN features such as encryption. However, Tor traffic can often be seen by volunteers and its exit nodes are often blacklisted. Tor speeds also tend to be slower than proxies and VPNs.
Agnė Srėbaliūtė
Senior Creative Copywriter
Agne is a writer with over 15 years of experience in PR, SEO, and creative writing. With a love for playing with words and meanings, she creates unique content. Introverted and often lost in thought, Agne balances her passion for the tech world with hiking adventures across various countries. She appreciates the IT field for its endless learning opportunities.
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