What is a VPN (Virtual Private Network)?

A guide to the popular privacy tool with centralized and decentralized forms

11 mins read
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Virtual Private Networks (VPNs) have taken off, with an estimated one-fifth of the world’s population having used one – 1.6B users is a huge market! Since privacy is the literal center of a VPN, the big question is: what sort of privacy are billions of people actually getting from VPNs?

All VPNs perform the common function of being a proxy or intermediary for your internet traffic: they essentially mask your identity so that you can have some privacy in what you do online. However, the level of actual privacy you have depends highly on the architecture of the VPN service and its privacy features.

This article will explain the crucial difference between centralized and decentralized VPNs and what each can and cannot do to protect your privacy online.

What does a VPN do?

When it comes to protecting your internet privacy, a VPN provides three core functions:

  1. A proxy or relay connection (which obscures the origin of your traffic)
  2. Tunneled encryption (which safeguards the content of your data in transit)
  3. Location selection (which allows you to choose from what country you access the web)

Keep in mind that a VPN is not the same thing as a proxy server: a VPN provides system-wide coverage, whereas proxies are app-specific and -configured. Moreover, VPNs are not the only way in which your online traffic might be encrypted, though VPN encryption is an important security layer.

What is a VPN?

What is metadata?

Do you need a VPN?

There is a false assumption that only people with something to hide need to go to additional lengths to make their activities private and anonymous. In reality, everyone needs to protect their privacy online because everyone’s privacy is being systematically exploited.

VPNs are linked to privacy, but traditional centralized VPNs can’t fully protect against tracking and surveillance. Decentralized VPNs (dVPNs) offer stronger security, especially for sensitive transactions and communications. NymVPN’s Anonymous mode routes traffic through five servers, ensuring top-tier anonymity. With [NymVPN](https://nym.com, you control your privacy, even against the AI surveillance threats growing in power daily.

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VPNs: FAQs

VPN clients typically disable or tunnel WebRTC and IPv6 traffic at the system level—avoiding leaks across apps—while proxy tools may not address these leak vectors consistently.

HTTPS encrypts content, but not metadata like timing or volume. A VPN masks IP and route metadata—but mixnet-enhanced VPNs go further by obfuscating traffic patterns.

Modern VPNs (e.g. WireGuard) use UDP hole-punching and NAT traversal techniques. Some VPN domains also adapt by using TCP-port 443 to bypass restrictive firewalls.

Server physically located in privacy-friendly jurisdictions reduces seizure risk. Transparently audited no-log policies or decentralized routing architectures improve trustworthiness.

Streaming-focused VPNs favor performance and consistent IP exit. Privacy-first VPNs prioritize metadata protection, multi-hop routing, or mixnet support over raw speed.

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