A proxy or proxy server is an intermediary server, system, or other device that is positioned between a user's device and the rest of the internet. A VPN or virtual private network is a technology that can involve both software and hardware components that encrypts all network-level traffic through a VPN server that is, like a proxy server, positioned between a user's device and the rest of the internet. While both proxy servers and VPN servers are similarly positioned, VPN servers function differently from proxy servers in that VPN servers must encrypt all traffic at the network level (IP layer), while a proxy server does not encrypt traffic at the network level.
A proxy server can encrypt traffic at the application level (Application Layer) via HTTPS using TLS (Transport Level Security), however this kind of encryption is not the same as VPN encryption, which occurs at the network level (IP layer). VPNs use specialized protocols to create secure, encrypted tunnels for internet traffic.
VPN Protocols
WireGuard
WireGuard is a modern, high-speed VPN protocol that uses a curated, state-of-the-art set of encryption protocols. Its core relies on ChaCha20 for symmetric encryption, Poly1305 for data authentication, and Curve25519 for key exchange. WireGuard uses UDP as its transport protocol.
OpenVPN
OpenVPN is an open-source VPN protocol that uses the OpenSSL library for encryption, supporting robust protocols like AES-256-GCM and Perfect Forward Secrecy. OpenVPN offers high flexibility, supporting both UDP for speed and TCP for reliability. OpenVPN is highly configurable, and compatible with almost all operating systems and devices, including Windows, macOS, Linux, Android, and iOS. While newer protocols like WireGuard can offer faster speeds, OpenVPN remains one of the most trusted and widely used protocols due to its long history, extensive security audits, and reliability.
IKEv2/IPsec
IKEv2/IPsec is a VPN protocol that uses Encapsulating Security Payload (ESP) to encrypt traffic, typically paired with AES. IKEv2/IPsec establishes a secure tunnel using IKEv2 for key management, utilizing UDP for its transport protocol. IKEv2/IPsec is highly stable for mobile devices, excelling at reconnecting quickly when switching from Wi-Fi to cellular data.
SSTP
SSTP is a VPN protocol developed by Microsoft that transports Point-to-Point Protocol (PPP) traffic through a secure SSL/TLS channel, making it excellent for bypassing firewalls. SSTP was introduced with Windows Vista SP1 as a more secure and reliable alternative to older protocols like PPTP and L2TP/IPsec. SSTP supports high-level encryption, most commonly AES-256.
L2TP/IPsec
L2TP/IPsec is a secure VPN protocol pairing Layer 2 Tunneling Protocol (L2TP) for tunnel creation with IPsec (Internet Protocol Security) for encryption. L2TP/IPsec is widely supported on modern operating systems, but is often slower than modern alternatives due to double encapsulation. L2TP/IPsec is typically paired with AES for encryption.
Proxy Protocols
HTTP and HTTPS (SSL/TLS)
HTTP and HTTPS (SSL/TLS) are standard protocols for web traffic that can be used by proxies. HTTPS (SSL/TLS) in particular provides encrypted connections, enhancing security at the application level.
SOCKS (SOCKS4/SOCKS5)
SOCKS (Socket Secure) is a proxy protocol that operates at both the session level (Session Layer) and transport level (Transport Layer). SOCKS can handle without interpreting various traffic types including HTTP, FTP, and P2P traffic, making SOCKS faster and more versatile than HTTP/HTTPS for applications like gaming, torrenting, or streaming.
SOCKS5 is a modern, secure, and flexible proxy protocol supporting both TCP anad UDP, along with authentication and IPv6. SOCKS4 is an older, limited protocol supporting only TCP and IPv4 with no authentication. SOCKS5 is the superior, safer choice to SOCKS4 for most users.
Shadowsocks
Shadowsocks is an open-source, encrypted proxy protocol specifically designed to bypass internet censorship. Shadowsocks operates at the application level (Application Layer) and uses a pre-shared key (password) and advanced cryptographic techniques (primarily AEAD) to turn user data into indistinguishable, random-looking packets.
Conclusion
While both proxies and VPNs are similar in that they both act as intermediaries between a user's device and the rest of the internet, VPNs function differently and provide different benefits from proxies. VPNs provide superior security and privacy to proxies by encrypting all device traffic. Proxies only mask users' IP addresses, offering faster speeds but lower security. VPNs prevent internet service providers (ISPs) from tracking users' activity, while proxies do not. VPNs are usually paid, while proxies often have free, less secure options. Use VPNs for privacy and security, and proxies for low-stakes tasks.