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What is Proxy Server?

Last Updated : 04 Aug, 2025
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A proxy server acts as a gateway between your device and the internet, masking your IP address and enhancing online privacy. But what exactly does it do, and why is it critical for businesses, developers, and everyday users? In this guide, we’ll break down proxy servers in simple terms exploring how they work, their key benefits (like bypassing geo-blocks and securing sensitive data), and the different types (residential, datacenter, and mobile proxies).

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For example, Smartproxy has been offering unique solutions for online anonymity and web data collection since 2018. It has a 55M+ residential proxy pool that opens horizons for block-free web scraping and geo-targeting. They provide access to 195+ locations worldwide, including city-level and 50 US states targeting You can check out Smartproxy's official website to uncover more of its unique features.

The proxy server also prevents the identification of the client’s IP address when the client makes any request to any other servers.

  • Internet Client and Internet resources: For Internet clients, Proxy servers also act as a shield for an internal network against the request coming from a client to access the data stored on the server. It makes the original IP address of the node remain hidden while accessing data from that server.
  • Protects true host identity: In this method, outgoing traffic appears to come from the proxy server rather than internet navigation. It must be configured to a specific application such as HTTP or FTP. For example, organizations can use a proxy to observe the traffic of their employees to get the work efficiently done. It can also be used to keep a check on any kindba of highly confidential data leakage. Some can also use it to increase their website rank.

Why to Use Private Proxy

These benefits make private proxies essential for enhancing security, privacy, and network control in both personal and organizational use.

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  • Defeat Hackers: To protect an organization's data from malicious use, passwords are used and different architects are set up, but still, there may be a possibility that this information can be hacked in case the IP address is accessible easily. To prevent such kind of misuse of Data Proxy servers are set up to prevent tracking of original IP addresses instead data is shown to come from a different IP address.
  • Filtering of Content: By caching the content of the websites, Proxy helps in fast access to the data that has been accessed very often.
  • Examine Packet Headers and Payloads: Payloads and packet headers of the requests made by the user nodes in the internal server to access social websites can be easily tracked and restricted.
  • To control internet usage of employees and children: In this, the Proxy server is used to control and monitor how their employees or kids use the internet. Organizations use it, to deny access to a specific website and instead redirecting you with a nice note asking you to refrain from looking at said sites on the company network.
  • Bandwidth savings and improved speeds: Proxy helps organizations to get better overall network performance with a good proxy server.
  • Privacy Benefits: Proxy servers are used to browse the internet more privately. It will change the IP address and identify the information the web request contains.
  • Security: Proxy server is used to encrypt your web requests to keep prying eyes from reading your transactions as it provides top-level security.

Types of Proxy Server

Explore the different types of proxy servers—residential, datacenter, mobile, and more. Learn how each works, and ideal use cases for privacy, security, and data tasks.

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Reverse Proxy Server

A reverse proxy does the opposite of forward proxy. A forward proxy acts on behalf of clients (or requesting hosts). Forward proxies can hide the identities of clients whereas reverse proxies can hide the identities of servers.The job of a reverse proxy server to listen to the request made by the client and redirect to the particular web server which is present on different servers. Reverse proxies have several use cases, a few are:

  • Load balancing: distribute the load to several web servers.
  • Cache static content: offload the web servers by caching static content like pictures, HTML pages.
  • Compression: compress and optimize content to speed up load time..

Web Proxy Server

Web Proxy forwards the HTTP requests, only URL is passed instead of a path. The request is sent to particular the proxy server responds. Examples, Apache, HAP Proxy.

Anonymous Proxy Server

This type of proxy server does not make an original IP address instead these servers are detectable still provides rational anonymity to the client device.

Highly Anonymity Proxy

This proxy server does not allow the original IP address and it as a proxy server to be detected.

Transparent Proxy

This type of proxy server is unable to provide any anonymity to the client, instead, the original IP address can be easily detected using this proxy. But it is put into use to act as a cache for the websites. A transparent proxy when combined with gateway results in a proxy server where the connection requests are sent by the client , then IP are redirected. Redirection will occurs without the client IP address configuration. HTTP headers present on the server-side can easily detect its redirection .

CGI Proxy

CGI proxy server developed to make the websites more accessible. It accepts the requests to target URLs using a web form and after processing its result will be returned to the web browser. It is less popular due to some privacy policies like VPNs but it still receives a lot of requests also. Its usage got reduced due to excessive traffic that can be caused to the website after passing the local filtration and thus leads to damage to the organization.

Suffix Proxy

Suffix proxy server basically appends the name of the proxy to the URL. This type of proxy doesn’t preserve any higher level of anonymity. It is used for bypassing the web filters. It is easy to use and can be easily implemented but is used less due to the more number of web filter present in it.

Distorting Proxy

Proxy servers are preferred to generate an incorrect original IP address of clients once being detected as a proxy server. To maintain the confidentiality of the Client IP address HTTP headers are used.

Tor Onion Proxy

This server aims at online anonymity to the user's personal information. It is used to route the traffic through various networks present worldwide to arise difficulty in tracking the users’ address and prevent the attack of any anonymous activities. It makes it difficult for any person who is trying to track the original address. In this type of routing, the information is encrypted in a multi-folds layer. At the destination, each layer is decrypted one by one to prevent the information to scramble and receive original content. This software is open-source and free of cost to use.

12P Anonymous Proxy

It uses encryption to hide all the communications at various levels. This encrypted data is then relayed through various network routers present at different locations and thus I2P is a fully distributed proxy. This software is free of cost and open source to use, It also resists the censorship.

DNS Proxy

DNS proxy take requests in the form of DNS queries and forward them to the Domain server where it can also be cached, moreover flow of request can also be redirected.

Rotating Proxy

A rotating proxy assign a new or different IP address to each user that connects to proxy. As users connect, the unique address is assign to it.

How Proxy Server Work?

Every computer has its unique IP address which it uses to communicate with another node. Similarly, the proxy server has its IP address that your computer knows.

  • You open a website in your browser.
  • Instead of going directly to the site, your request first goes to the proxy server.
  • The proxy reads your request and sends it to the website on your behalf.
  • The website sends the response back to the proxy (not directly to you).
  • The proxy checks the response for security issues (like malware).
  • If everything looks fine, the proxy sends the data to your browser.

This process hides your actual IP address and can also make your connection more secure or faster in some cases.

Note: Watch this video for a practical demonstration of proxy server operation.

What is the reason of using Proxy Server?

There are some reasons why everyone should proxy server because it provide following advantages including privacy, web scraping, fast speed, saves bandwidth etc.

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