Proxies and VPNs (Virtual Private Networks) are traffic intermediation tools that hide, reroute, or encrypt data between the user and the final destination. Although they are used almost synonymously in everyday speech, their differences—technical and security-related—are substantial [1][2].


Article Objectives:

  1. Describe Proxy and VPN architectures.
  2. Compare their characteristics in terms of security, privacy, performance, and ease of use.
  3. Provide a critical view of their limitations and Risks.
  4. Offer practical recommendations.


Architecture and Operation

Below is a reference comparison of the key elements that distinguish proxies from VPNs in terms of their level of operation, encryption mechanisms and scope of the connection.



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ProxyVPN
Level OSILayer 7 (HTTP/HTTPS Proxy) or 4 (SOCKS) [1][5]Layer 3 (IP) [2][4]
EncryptionOptional (e.g., HTTPS proxy)Required (AES encrypted tunnel, ChaCha20) [2]
Tunnel scopeConfigured application traffic onlyAll network traffic of the device
AuthenticationVariable; Sometimes anonymous or IP-basedManaged by VPN protocol (certificates/PSK)
ComplexityLowMedium–High
ImplementationEasy to deploy in browsers or appsRequires client and Server Infrastructure


Security Comparison

Open proxies can inspect and modify plaintext data, creating privacy risks [1]. Some free VPNsTerminate bandwidth or sell user data, undermining expected privacy [2].



ProxyVPN
Data EncryptionOnly if HTTPS is usedAlways (all IP layers) [2][15]
Metadata protectionPartial; source IP address hiddenComplete; Real IP and Hidden Destinations
VulnerabilitiesSusceptible to DNS and WebRTC leaksMinimal risk if properly configured (kill switch)
Activity LoggingVendor dependent; may store logs without informingVendor dependent; Reviewing policies is essential




ScenarioOption recommendedJustification
Access blocked content on the webProxyQuick browser settings; Lower resource consumption
Secure remote workVPNEnd-to-end encryption and access to corporate networks
Video streamingProxy/VPNProxy for HTTP video; VPN to Overcome Geo-Restrictions
Maximum Privacy on P2P NetworksVPNPrevents IP Leaks and Encrypts All Traffic


Evidence

Various studies and practical tests have examined the performance, security, and risks associated with the use of proxies and VPNs:


  1. Availability and behavior of open proxies: Mani et al. They analyzed over 107,000 proxies open for 50 days, discovering that 92% were unresponsive and many injected malware or performed Man-in-the-Middle (MitM) attacks over TLS, demonstrating severe risks to content integrity (arxiv.org).
  2. VPN Performance on Consumer Hardware: Hall evaluated OpenVPN on a Linksys WRT54GL router with DD-WRT firmware. Using a factorial design, he found that encryption (e.g., AES vs. Blowfish) limited throughput and that the transport protocol influenced latency (arxiv.org). Speed and latency comparisons: Sites like Comparitech measured in real-world scenarios that encrypted VPNs add 10–30% extra latency compared to direct connections, while unencrypted proxies barely impact RTT (round-trip time) but do not protect other protocols. (comparitech.com).
  3. VPN Protocol Performance: Academic studies (IPSec, PPTP, SSL) in Windows Server 2003 environments showed throughput variations of 50–150 Mbps depending on the algorithm and protocol, confirming that protocol choice is critical for balancing security and speed (researchgate.net).

Performance and Latency

Performance and latency of a Proxy

  1. High speed on simple HTTP/HTTPS connections (does not encrypt all traffic).
  2. Low computational overhead.
  3. Does not cover protocols such as P2P or VoIP.

Performance of a VPN

  1. Latency added by encrypting/decrypting all traffic.
  2. Increased CPU and battery consumption on mobile devices.
  3. Distributed servers help optimize routes [2].

Limitations and Risks

  1. DNS/WebRTC (Proxy) Leaks: Without additional configurations, the browser can leak traffic outside the proxy [1].
  2. VPN Tunnel Interruption: Without a kill switch, the real IP is exposed if the connection fails [2].
  3. Deceptive Logging Policies: Many providers fail audits independent.
  4. Performance Impact: intensive encryption can degrade connections on limited hardware [2].

Practical Recommendations

  1. Evaluate needs: proxy for occasional browsing; VPN for comprehensive protection.
  2. Review privacy policies: look for providers with \"no logs\" audits.
  3. Configure a kill switch and secure DNS: minimize data leaks.
  4. Keep software updated: avoid vulnerabilities known.


Bibliography

  1. Proxy server, Wikipedia. Retrieved 2025. en.wikipedia.org
  2. Virtual private network, Wikipedia. Retrieved 2025. en.wikipedia.org
  3. OSI model, Wikipedia. Retrieved 2025. en.wikipedia.org
  4. Network layer, Wikipedia. Retrieved 2025. en.wikipedia.org
  5. SOCKS, Wikipedia. Retrieved 2025. en.wikipedia.org
  6. IPsec, Wikipedia. Retrieved 2025. en.wikipedia.org