INTRODUCTION
From the rise of digital espionage to the increase in geographical restrictions on digital content, the modern user faces multiple threats and impediments in their digital lives. While technologies such as proxies allow some level of anonymity and geographic access, they lack the level of encryption, encapsulation, and full coverage offered by VPNs.
A VPN encrypts all operating system traffic, providing not only IP anonymity but also comprehensive protection against interception, tampering, or surveillance. This capability positions it as an essential tool for both individual users concerned about their privacy and organizations looking to protect their distributed networks.
DEFINITION AND OPERATION OF A VPN
A VPN (Virtual Private Network) creates an encrypted tunnel between the user's device and a remote VPN server. This tunnel encapsulates and encrypts all traffic (not just the browser), ensuring that no one—neither the ISP nor malicious actors on the network—can access or manipulate data in transit.
Common protocols include:
- OpenVPN: Open source, flexible, secure.
- WireGuard: More modern, with better performance and a smaller attack surface.
- IKEv2/IPSec: High speed and stability on mobile connections.
Traffic travels from the user's device to the VPN server, which then acts as the exit point to the internet. This way, the user “inherits” the server's IP address and browses anonymously.
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COMPARISON WITH PROXY
| Feature | VPN | Proxy |
|------------------------|--------------------------------|--------------------------------|
| Traffic reach | The entire operating system | Specific app (browser, etc.)|
| Encryption | Yes, end to end | Not necessarily |
| Wi-Fi protection | Yes, against sniffing and MITM | No |
| Data integrity | High | Null or low |
| Ease of detection | Difficult if well configured | Easy (common datacenter IPs) |
| DNS Protection | Yes (with DNS leak protection) | No |
Sources such as the Electronic Frontier Foundation and Cloudflare agree that for complete security on public networks, VPNs are indispensable.
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CRITICAL VPN APPLICATIONS
4.1. Security on Public Wi-Fi
Users connecting in cafes, airports, or hotels are vulnerable to sniffers, man-in-the-middle attacks, and DNS spoofing. A VPN eliminates this risk by encrypting all traffic.
4.2. Teleworking and Secure Remote Access
Many companies use VPNs to allow their employees to securely access intranets, servers, and databases. In these environments, a proxy is not enough.
4.3. Avoid surveillance and censorship
In countries with active censorship or surveillance (China, Iran, Russia), obfuscated VPNs (obfsproxy, Shadowsocks) allow free and secure access.
4.4. P2P downloads
A VPN allows you to download torrents securely and without exposing your public IP. Many proxies block or filter P2P traffic.
4.5. Protection against doxing or IP exposure
Gamers, streamers, or influencers can protect themselves from DDoS attacks or doxing by using a VPN with a dedicated IP.
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QUALITATIVE BENEFITS OVER A PROXY
5.1. Full Encryption
Unlike a proxy that only hides IP addresses, a VPN encrypts everything (data, DNS, background traffic), ensuring privacy and protection against spying.
5.2. Lower Legal or Ethical Risk
By protecting the user even in insecure contexts, a VPN acts as a defense tool against vulnerabilities without inducing abuse (unlike proxies used for spam or mass scraping).
5.3. More Stable User Experience
With technologies such as kill-switch, automatic reconnection, multihop, and split tunneling, a modern VPN service offers superior stability than a proxy.
5.4. Consumer Trust
VPNs are recognized as privacy tools by the general public and are endorsed by digital rights NGOs. Providers such as NordVPN, Mullvad, ProtonVPN, or Surfshark position themselves as ethical brands.
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INFRASTRUCTURE AND SCALABILITY
A professional VPN service requires:
- Dedicated servers or VPS with good connectivity.
- TLS certificates, keys and secure tunnel configuration.
- Control panel for users (OpenVPN Access Server, Radius, etc.).
- Bandwidth management and monitoring.
- Optional: dedicated IPs, obfuscated servers, client-side kill-switch.
The distribution of
.ovpnfiles, mobile apps and connections with desktop clients can also be automated.
BUSINESS MODELS AND PROFITABILITY
7.1. Monetization Models
- Monthly/Annual Subscription (B2C).
- Business Access (B2B).
- White-label VPN (white label for resellers).
- Niche VPN (gamers, expats, journalists).
7.2. Average Price
- General Market: $2 to $10 per month.
- Dedicated IP: +$3 to $5 per month.
7.3. Added Value
- Multi-hop VPN (server chain).
- Malware/DNS tracking protection.
- Built-in firewall.
- Cross-platform apps.
LIMITATIONS AND CHALLENGES
- Higher infrastructure cost than a proxy.
- Restrictions in certain countries that detect and block VPN traffic (Deep Packet Inspection).
- Latency issues if the server is far away.
- Some services (such as Netflix) block VPN IPs due to massive usage, although this is mitigated with smart rotation.
TRENDS AND GROWTH
The global VPN industry is estimated at more than USD 44.6 billion in 2024, according to Global Market Insights. Compound annual growth of 15% is projected until 2030.
Growth is driven by:
- Increase in digital censorship.
- Privacy regulations (GDPR, CCPA).
- Increase in connected devices (IoT).
CONCLUSION
While proxies offer fast, targeted solutions for tasks like scraping or geolocation, VPNs are the only truly comprehensive tool when it comes to security, privacy, and digital identity protection. The ability to encrypt all traffic, protect the user on any network, and offer a consistent and reliable experience positions VPN as the superior choice in most scenarios.
For service providers, including VPN as a primary solution (complemented by a proxy in specific cases) represents a solid, ethical value proposition aligned with the growing demand for digital privacy.
REFERENCES
- Electronic Frontier Foundation (EFF) – https://www.eff.org/
- Global Market Insights: VPN Market – https://www.gminsights.com/industry-analysis/vpn-market
- Cloudflare Docs – VPN vs Proxy: https://developers.cloudflare.com/cloudflare-one/connections/
- NordVPN Reports – https://nordvpn.com/blog
- ProtonVPN Technical Whitepaper – https://protonvpn.com/blog