Proxies vs. VPNs: Key Differences in IP Sourcing and Sharing

While both VPNs and proxies serve to mask your online identity, there are two critical differences between these services that aren’t as clear-cut as they once were. These distinctions largely depend on your chosen provider and budget allocation.

IP Sourcing: Where Do They Get Their Addresses?

The first major difference lies in how these services source their IP addresses. Proxies, designed to make users appear as normal internet traffic, obtain IPs from diverse sources including data centers, residential homes, and even mobile SIM cards. Residential and mobile IPs are particularly valuable for maintaining anonymity online, as they enable users to access geo-restricted content that would otherwise be unavailable from their physical location.

In contrast, VPN providers typically source their IPs from data centers, prioritizing connection speed and stability. While this approach offers performance benefits, it comes with a significant drawback: data center IPs are more easily identified and blocked by websites that restrict VPN access or geo-restricted content platforms.

IP Exclusivity: Shared or Dedicated?

The second key distinction concerns how many users share a single IP address. With proxy services, customers can typically choose between shared proxies (used by multiple users simultaneously) or dedicated proxies (exclusive to a single user) for an additional cost.

Traditionally, VPN services have defaulted to shared IPs among multiple users. However, the market is evolving, with some VPN providers now offering dedicated IP options. When this feature isn’t explicitly mentioned in a service’s offering, customers should assume they’re sharing their assigned IP with other users on the network.

These distinctions have become increasingly important as online platforms become more sophisticated in detecting and blocking alternative access methods. For users prioritizing access to geo-restricted content or requiring maximum anonymity, understanding these differences is crucial when selecting between proxy and VPN services.