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26 December 2024

What is a VPN: How It Works, Types, Pros & Cons for Business

A Virtual Private Network (VPN) is a technology that allows you to establish a secure connection to the internet.

When connecting to the internet via a VPN, the software creates a secure connection between your device and a remote VPN server, encrypting your web browsing data and hiding your IP address.

How a VPN Works

When you browse the web without a VPN, your connection goes directly from your device to the server hosting the desired website or service.
To send you the appropriate content, this web server needs to know your IP address.

Your IP address is a unique identifier that tells other computers where to send information so it reaches you.
A lot of personal information is tied to your IP address. It reveals your geographical location and can be used to build a general picture of your online activity.

For these reasons, many users prefer to hide their IP address using a VPN.
When you browse the web with a VPN enabled, your connection is always routed through a remote VPN server before it reaches the web server hosting the desired website or service.
When the web server sends you information, it sends it to the VPN server, which then forwards it to you. Thus, the websites you visit only see a connection request from the VPN server, send the information to it, and do not know your real IP address.

Benefits of Using a VPN

Three key benefits of using a VPN:

  • Masking your IP address to hide or change your location from the websites you visit.
  • Encrypting web traffic to protect your data when using unsecured Wi-Fi.
  • Preventing your internet service provider (ISP) and other third parties from monitoring your online activity.

Drawbacks of Using a VPN

A VPN is not a one-size-fits-all solution for all internet privacy and security issues. The main drawbacks of using a VPN are often related to a misunderstanding of its limitations.

Things to keep in mind:

  • A VPN will not provide you with complete anonymity.

    For example, if you log into personal accounts while browsing the internet, it does not matter whether you are using a VPN. Companies will still be able to track your activity and link it to your VPN server's IP address.

  • A high-quality, secure VPN costs money.

    A low-quality VPN may leak your personal information, such as revealing your true IP address or DNS requests.

  • A VPN almost always slows down your internet speed.

  • Using a VPN on mobile devices increases data consumption.

  • Some online services actively try to block customers from using VPNs.

What VPNs Are Used For

A virtual private network is used to protect your online privacy, browse safely on public Wi-Fi networks, and access region-specific content.

Seven popular ways to use a virtual private network: (Note: The original text lists six)

  1. Protecting online privacy.

    Without a VPN, your internet service provider (ISP) can see all the websites you visit.

    When you use a VPN, your web traffic is encrypted as it travels from your device to a private server, making it much harder for third parties to monitor your online activity.

  2. Accessing region-specific content.

    Websites use your IP address to determine your physical location and may offer different content for different countries.

  3. Security on public Wi-Fi networks.

    VPN services encrypt all traffic originating from your device.

    You can use a VPN to protect your sensitive data on unsecured Wi-Fi networks.

  4. Avoiding bandwidth throttling.

    Some internet providers intentionally slow down your internet connection to avoid network congestion.

    You can use a VPN to encrypt your online activity, which prevents your ISP from throttling your internet speed.

  5. Saving money when shopping online.

    Online stores may use your IP address to change the prices of their goods depending on your location.

    In addition to protecting your payment information, you can use a VPN to spoof your location and find the best deals.

  6. Connecting to a virtual office network.

    You can use a VPN to connect your device directly to your company's internal network.

Encryption Algorithms

VPNs use encryption to hide the details of your online activity as it travels between your device and the VPN server.

The most commonly used ciphers in VPN services:

Encryption Algorithm Description
Advanced Encryption Standard (AES) One of the most secure ciphers. Available with 128-bit and 256-bit key lengths.
Blowfish It used to be the default cipher in most VPN connections, but it has now been largely replaced by AES-256.
ChaCha20 Gaining popularity as the only cipher compatible with the WireGuard protocol. Like AES, ChaCha20 uses a 256-bit key, which is considered highly secure.
Camellia A cipher very similar to AES in terms of security and speed. It is believed that even with the shorter key length option (128-bit), it is impossible to crack via a brute-force attack given current technology.

VPN Protocols

VPN protocols are the rules and processes your device follows to establish a secure connection with a VPN server.

Depending on the protocol used, a VPN will have different speeds, capabilities, and vulnerabilities. Most services will allow you to choose which protocol you want to use in the app settings.

Here is a brief overview of the most common protocols.

Protocol Description
OpenVPN Open source. Considered secure and compatible with almost all VPN-supported devices.
WireGuard Suitable for mobile VPN users. Not as good at bypassing firewalls as other VPN protocols.
IKEv2/IPsec A closed-source protocol that is ideal if you are using a VPN on your mobile phone and regularly switch between Wi-Fi and, for example, 3G/4G.
L2TP/IPsec A slower protocol. Not recommended if you are sharing personal information or using a VPN that publicly shares its encryption keys on the internet.
SSTP Works well with firewalls, but has closed-source code and is potentially vulnerable to attacks.
PPTP PPTP works fast because it does not protect your data. It is an outdated, insecure protocol that is recommended to be avoided.