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What is a Proxy?
What we call "proxy" is nothing more than a server mirroring a webpage so you can see it without accessing the website itself. This has many advantages. First of all, you have increased privacy. Servers usually keep track of who visits them. Furthermore, it is possible to make a recompilations of all the websites that you have ever visited. When using a proxy nobody will ever know what you visit online.
There are tens of thousands of proxies out there. They are becoming increasingly popular because of their benefits. It is true that some proxies are better than others so knowing what a proxy is and what to set as an standard is pretty useful.
The dictionary describes a proxy as "A computer network service that allows clients to make indirect network connections to other network services". That is a very complete description and there is something important to be rescued: Proxies are not necessarily contained in separate websites. Your computer may act as a proxy if someone else connects to it just as you can connect to your LAN Local Area Network) and browse internet.
Will Proxies Help my Privacy?
The short answer is: yes. Proxies are capable of keeping you totally anonymous from hackers and logs. Some proxies allow you to change the title of all the pages you see. This can come very in-handy if you are using a shared computer. This way, no matter who uses the computer, he or she will be unable to look at your browser's history and see the pages you have browsed (the name of the proxy will appear instead).
Other proxies allow you to block images or advertisement. By blocking images and ADS, you are safe from seeing anything unwanted. We all know the internet is a dangerous place and there's a bit of everything to see. Proxies can help you block everything or see everything whenever you want.
In conclusion, proxies are perfectly capable to maintain your identity completely anonymous. If you want, you can connect to a proxy in a foreign country such as China and appear as you're browsing the web from there and thus protect your online privacy.
How do Proxies Work?
Proxies are servers. You connect to a proxy and the proxy connects to the website you want to visit; it acts like an intermediary. When you submit a website's URL into a proxy, what the proxy first does is retrieve the data of the foreign page. Then, depending on the settings you selected, it modifies the data accordingly. If you opt your proxy not to show images, it will strip all < img > html tags. If you don't want your proxy to show the main title, it will eliminate the < title > tag. This all happens before the data is sent to you. A fast proxy can do all this in milliseconds.
So how is this useful? Well, since the proxy is the one to retrieve the data from the foreign website, your IP address is never communicated. Additionally, most proxies have Java Script security measurements so you can be sure that you'll never catch a virus if you're using a proxy. Finally, some hackers use IP's obtained from logs in order to conduct a port scan and then hack someone's computer. By using a proxy, your IP will never appear in anyone computer and you can stop worrying about such hackers (some hackers have different methods).