On the surface, a proxy server and VPN (virtual private network) seem incredibly similar. Both act as a go-between when establishing connections. Primarily, a proxy and VPN accomplish the same things, and that’s to route internet traffic through a remote server and assign a new IP address, one that’s virtually anonymous. You can surf the web while knowing your IP is unknown. And both a VPN and proxy will give you an IP address from anywhere in the world, allowing you to access content as if you were within that local region.

That’s about where the similarities begin and end. VPNs are configured at the system level, where encryption takes place, protecting sensitive data and providing that all-too-necessary added level of security. When utilizing a VPN, everyone from an internet service provider to a pesky hacker will not be able to track you online. While a VPN’s main goal is to make sure data is protected, bypassing content restrictions with various streaming services with individual use is a key aspect of VPNs.

Proxies, on the other hand, do not reside at the system level, but instead are located at the app level with one of the intended uses being to help collect data from various websites. The action of a proxy is sometimes called data extraction, but is more commonly known as “web scraping.”

A proxy will also perform better than a VPN, due to different levels of encryption so, for the most part, proxies provide a little faster connection.

The security difference between VPN and a proxy

In general, a VPN provides additional security versus a proxy server, mainly due to the encryption that takes place at the system level before any data is sent to the VPN server. When it comes to accessing, say free WiFi at the airport or other public place, be aware that there are safety concerns accessing a free VPN.

Proxy servers act much differently. And not all proxies are created equal, especially when it comes to security. For instance, Hypertext Transfer Protocol (HTTP) proxies do not offer extra encryption, so the expectation is that, with the exception of masking an IP address, security is at a minimum. And what about Hypertext Transfer Protocol Secure (HTTPS)? You might think you’re getting more security than HTTP, but that’s not necessarily the case.

Certain HTTP proxies may support HTTPS, but this capability should not be assumed or relied upon, simply because it is a more secure version of HTTP.

What is the value of a proxy server?

If you're a business, proxies are an invaluable tool and can provide a competitive advantage, allowing for gathering vital information from competitors’ websites while extracting everything from various market research to pricing for similar goods and services.

Unlike a VPN, a large pool of proxies makes access to web data virtually block-free, even if a large amount of requests are generated from the same IP addresses. A proxy pool, unlike a VPN, can send out multiple requests at the same time without fear of being blocked, allowing for a seamless gathering of data.

Let’s say you’re a big box retailer looking to beat the competitor’s pricing to gain a competitive advantage with customer loyalty and retention. Gathering data through a proxy pool allows for that data to be extracted without the fear of being blocked and flagged.

Proxies versus VPNs for web scraping

Both a proxy and VPN can be used for web scraping, but there are differences to consider. Having the right proxy for web scraping – the process of using bots to extract data and content from a given website – helps avoid the many restrictions and roadblocks often seen with VPNs.

Some of those restrictions include IP blocks and CAPTCHAs, a security measure known as challenge-response authentication. Multiple requests coming from one single IP address will more than likely hit roadblocks, whereas utilizing a proxy server pool allows for unlimited data gathering being sent from multiple IP addresses. Utilizing a proxy server is a safer bet for web scraping, but which proxy is best?

The right proxy for the right application

Residential proxies are the most popular, as they allow the user a specific IP address corresponding to the chosen device. The benefit of a residential proxy is that the IP comes from a household device, and websites are less suspicious knowing the request came from an actual customer.

Datacenter proxies are a lot more reliable (in the sense that a regular household device may be turned off at any moment. Servers are usually never turned off) and faster (since they get a business-grade internet instead of whatever the person has bought for themselves). But they're also easier to detect. If an ecommerce platform sees a user come from a datacenter, they'll be at least a little bit suspicious.

So What’s Better, a VPN or a Proxy?

While both provide anonymity by hiding the IP address and can access data worldwide, there are stark differences between the two. Proxy servers do not provide proprietary encryption, which makes it significantly less secure than a VPN for the typical consumer. VPNs offer increased security as they encrypt incoming and outgoing traffic. For businesses and individuals that regularly work with sensitive data and need to keep their browsing activity hidden, a VPN is the best choice.

For data gathering, social networking, and retail, there are advantages to using proxies. With data gathering, proxies allow one to keep an eye on the competition while remaining completely anonymous, helping to level the playing field between businesses. Social media proxies essentially become the middleman between users and platforms like Facebook, Instagram, and TikTok. These proxies offer their IP address and location, enabling users to operate multiple accounts without being detected. For retail businesses, bots and proxies are used to automate the purchasing process.

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