Proxy vs VPN vs Tor vs Hoody: What's the Difference?

Proxy vs VPN vs Tor vs Hoody: What are they?

Proxy servers, VPNs, Tor, and Hoody are all ways to access the internet in a more private and secure way. But they all work in slightly different ways, and some are better at achieving privacy than others. But which one is best for you might depend on what you want to use it for and why.

Perhaps you just want to stream live video from another country, or maybe you want to access a restricted news site without fear of your government spying on you. Or you simply want to stop advertisers from tracking you and keep all of your personal data and identity on lockdown.

Let's unpack each tool, what they are used for, and their pros and cons to help you make an informed decision about how to protect your privacy.

Proxy servers: what are they and how do they work?

A proxy is a system of routers that serves as an intermediary between your computer and the internet. When you connect to the internet using a proxy, instead of your computer connecting directly to a website, the web traffic flow is as follows:

• You enter a website URL into your browser
• The request is sent to the proxy
• The proxy forwards the request to the website's web server
• The web server sends the website data back to the proxy
• The proxy forwards the data back to you

But why? What's the point of data flowing through a proxy? Why not just go straight to the source yourself?

Well, proxies are more than just a traffic-forwarding service. They can provide some extra security as they can act as a firewall, filtering out harmful material that could otherwise be sent straight to your system. Since they sit between you and the world wide web, they also hide your IP address— the websites you visit via a proxy will see its IP address instead.

The benefits of proxy servers

There are several types of proxy servers and they can be configured to do different things so their advantages (and disadvantages) may differ slightly. But generally, the most common benefits of proxy servers are that they:

• Give some online anonymity by hiding your IP address
• Can help bypass geo-restrictions and censorship
• Filter web content for harmful data packages

They can also be used to control access to certain sites, a feature often utilized by businesses to limit employees' web activities while at work. Whether you consider that to be an advantage or a disadvantage will depend on your status either an employer or an employee!

So far so good, but what about the downside?

The disadvantages of proxy servers

Proxy servers have several downsides that need to be considered:

Data logging risks data exposure: Proxy servers log users' IP addresses along with the details of their web requests. Not all proxy servers encrypt this data, and some will even sell it to third parties. Your data could either be at risk of a data breach or it's being sold to the highest bidder.

Lack of encryption: While proxy servers do use some level of encryption, it's not as advanced as the encryption protocols used by VPNs for example. This means sensitive information like usernames and passwords may be at risk.

Limited privacy: Masking your IP addresses isn't enough to ensure privacy online, especially when a proxy is using an unprotected network or has an ad-based business strategy. Not only might they be selling your data, but the ads could be utilized by cybercriminals for ��malvertising”.

Requires technical knowledge: Setting up a proxy in a way that doesn't leave you open to hackers can require some expertise in manual coding. Also, not all proxies are compatible with all networks or protocols.

Slow performance: Most proxy servers have limited bandwidth and can get overcrowded quickly, even if it's a premium proxy server.

What is a VPN and how does it work?

A VPN, otherwise known as a Virtual Private Network, is basically a glorified proxy. It acts in the same way, as an intermediary between an internet user and the world wide web. But when it comes to VPN vs proxy, the main difference is that instead of just being an open gateway to the internet, VPNs are more like a closed tunnel.

How it works is:

• You first install a VPN client on your devices such as a smartphone, laptop, or tablet
• You type a web request into the search bar using the installed client
• The VPN client encrypts the request before sending it via the ISP to the VPN's server (the encryption means that the ISP can't see details of the web request)
• The VPN server decrypts the request, assigns it a new IP address (the address of the server), and sends the traffic to its intended destination
• The data returns to the client via the same encrypted pathway.

The benefits of a VPN

Just like a proxy server, a VPN hides your IP address. But unlike proxies, the VPN encrypts the data making it even more secure. The extra level of encryption gives VPNs extra weight in the VPN vs proxy battle.

By hiding and encrypting your IP address and your traffic VPNs can make using public WiFi safer, help you avoid bandwidth throttling from your ISP, and let you bypass geo-restrictions.

Thanks to the VPN's encryption, it's also safer than proxies when it comes to getting around censorship.

For many journalists, activists, and internet users living under oppressive regimes, VPNs allow them to safely access banned websites and to communicate without fear of their ISP, government, or other bad actors spying on them.

The disadvantages of VPNs

VPNs are a popular privacy tool but that doesn't mean they are without their problems. Let's take a look at the issues with VPNs:

Slower speed: VPNs are still an extra step in your internet flow, so you can expect a certain degree of slowdown. But slow internet speed is the least of your worries.

Not all VPNs: VPNs have long been heralded as a mighty protector of the internet, but this can give a false sense of security. Simply because not all VPNs are made equally. It depends on their methods of encryption, and unless you're an encryption expert, it's very hard to know which are the “good” ones.

Doesn't hide everything: Both proxies and VPNs hide IP addresses, and VPNs encrypt your web requests, but this isn't the only data that can be tracked across the internet. Your digital fingerprint is made up of so many other data points that VPNs just can't hide. So, you can still be identified even when using a VPN.

Data logging: Even when a VPN provider states that they have a strict no-log policy, it's very hard to prove it since the industry is unregulated. Of course, there are plenty of VPN service providers who claim to be independently audited, but then faking VPN audits is easy to do.

VPN bans and restrictions: Keep in mind that VPNs are restricted or banned in certain countries. If you get caught using a VPN in a country with a ban you could face jail time or a hefty fine. Also, some websites such as Netflix block access if they see you're using a VPN.

Dropping connection: VPNs often drop the connection, and not only is that annoying but it exposes you to privacy and security risks while you try to reconnect.

What is Tor and how does it work?

Tor, The Onion Routing browser, is a browser that uses a particular type of network that is designed to anonymize your web traffic. It's sometimes referred to as the Onion, or ”the dark web” as its ability to conceal a person's online identity has attracted those interested in doing dark deeds. But, it's not only cybercriminals that benefit from using Tor, but we'll get to that in a moment.

First, we'll give a brief rundown on how Tor works, but if you want a more in-depth explanation, then check out our article: Is the “Dark Web” Really So Dark? An Introduction to Tor.

So, how does Tor work?

In a nutshell, there are three main elements that make Tor what it is:

1. The complicated network of thousands of intermediary servers (Tor relays/nodes)
2. This network is decentralized and made up of thousands of volunteer nodes
3. The web request data is “wrapped” in layers and layers of encryption, layered, much like an onion, hence the name.

The wrapped-up data, your web request, is passed randomly from server to server, with a layer of encryption stripped away each time before being bounced to the next random relay. This process is repeated until the final layer is decrypted and the message is sent to its destination.

This randomized process with multi-layered encryption and decryption means that the data stays hidden throughout the entire flow. Its decentralized nature also means no single entity or organization has access to all of the nodes or the data passing through them.

Each server that interacts with the data only knows of the previous and following server. No server in the Tor network knows both the origin and the final destination.

This brings us to the benefits...

The benefits of Tor

Just like proxies and VPNs, Tor hides your IP address, but it does so much more. It's open-source and it's free but the real benefit is the anonymity that its design provides to anyone sending or receiving information over the Tor browser. This anonymity benefits many different groups of people, such as:

• Activists and journalists, who may need to hide their identity or evade strict censorship
• Whistleblowers who want to pass evidence of wrongdoing without fear of retaliation
• Military, law enforcement, and intelligence bodies
• Vulnerable groups, such as LGBTQA+ or survivors of domestic abuse
• Any internet user concerned about growing mass surveillance
• And of course, criminals

The disadvantages of Tor

The main downside of Tor also comes from its main benefit, anonymity. There will always be those who will use the superpower of anonymity for evil. The Tor browser does attract dodgy sites run by dodgy characters so before you delve into the dark web, have good antivirus software installed to keep you safe from viruses, and other malware.

The decentralized network does also mean that you can't be entirely sure of the security of the servers within it. No network is entirely hack-proof.

There have also been reports that the FBI has been able to de-anonymize Tor users, with little details on “how” they managed it. Of course, they're likely to keep that information to themselves!

The other downside to Tor is the last relay in the network, the exit node. At this point, your web request and all the attached data are “naked”, without any encrypted layers. If this node is compromised, then identifying information could be accessed.

Also, Tor's ability to keep you anonymous and free from tracking depends on how you use it. For example, if you use Tor with Google, then you basically neutralize all of Tor's good work. And we still have the same issue when it comes to fingerprinting and user experience tracking. Both are still possible through Tor.

While there are ways to configure your security settings for Tor to avoid fingerprinting, it usually means that most websites won't load correctly or at all, so kind of negates the issue.

Another minor downside is that because of the complicated network that your traffic has to travel through, it's a slower browser than some others, and because of this, it's not a great option for accessing streaming sites.

All that said, Tor is a great resource and is winning so far in the anonymity stakes in the proxy vs VPN vs Tor vs Hoody case. But, we still have one more contender.

What is Hoody and how does it work?

Hoody is a privacy app that promises total privacy and anonymity not by blocking tracking or fingerprinting, but by spoofing the data collected. It's a novel approach that means websites get the information they need to function correctly, but at the same time, it keeps the user's real data completely hidden.

But how?

Well, Hoody uses a multi-node relay system much like Tor. But unlike Tor with its volunteer nodes, Hoody operates on private, fully-encrypted networks. This so-called Bulletproof Privacy Network (BPN) is a system of dedicated hardware in key data centers around the world.

It also goes one step further in dealing with fingerprinting and tracking using Hoody Phantom Browsing™. This full abstraction layer gives uncorrelated tab-by-tab and app-by-app browser virtualization. In layman's terms, that means that every time a new app or browser tab is opened, a remote virtual browser does the actual work and then injects the results back into the user's system.

It also means that although fingerprinting still happens, the data provided to the website is from the virtual machine doing the browsing, and that data is randomized every session. This keeps the user's data completely separate from the websites doing the tracking and data collecting.

Benefits of Hoody app

Just like all the other contenders, Hoody hides your IP address and allows you to bypass the geo-location restriction. But, the good news is that thanks to its random browsing technology, it does it faster and in a more secure way.

It also means no tracking and no fingerprinting, so unless you provide the details manually by typing them into a web page, you can be completely anonymous online.

Hoody is also much more streamlined than VPNs, Tor, or proxies. You don't need to be a technical wizard to use it, as the app is really user-friendly. Configuring it is simple and it gives much more freedom of use. For example, with VPNs, your device is locked to the same location. You can't open one tab using one location and in a new tab use a different location.

But you can with Hoody Smart Routing™. This technology automatically chooses the most optimized and secure location for every website you visit.

You can also set a different country per website, without ever disconnecting. You can even use Hoody on one tab, and turn it off for another in the same session.

As we mentioned above, Hoody Phantom Browsing™ completely solves the fingerprinting and tracking issue. That means that with Hoody you can even use data-hungry Google and not give it a scrap of data.

The disadvantages of Hoody

Much like any privacy tool on the market, Hoody can't save you from yourself. If you choose to share personal details on social media or enter sensitive details into a web page, then you take the risk of them being exposed.

And again, just like the other tools on our list, if your computer is already infected with malware, then Hoody isn't able to hide what cybercriminals already have access to.

If you manually make an exception for an app or website when using Hoody, but forget to remove it, your IP will then automatically and voluntarily leak your data to that specific website.

Some users might have issues in trying to use Hoody if their ISP, school, or workplace has a heavy firewall system that whitelists specific websites. In that case, Hoody won't be able to run.

Proxy vs VPN vs Tor vs Hoody: Which will you use?

When it comes to proxy vs VPN and Tor vs Hoody, it can be hard for privacy-minded internet users to choose the right tool. On the surface level, they do similar things but they all work in different ways that bring certain advantages and disadvantages to each.

Plus, being private and keeping your data secure is one thing, but being anonymous is quite another.

Proxy servers are very basic. They can hide IP addresses but it's kind of like having net curtains on an open window. They don't offer much in the way of real privacy or security.

VPNs go a step further with their encrypted tunnel. But they still can't hide every data point that makes up your digital fingerprint. Your web request and some data may be encrypted, but you can still be identified. While VPNs can improve privacy, and help you get around geo-restrictions, they are not the hide-all cloak of anonymity that many people believe them to be.

Anonymity is much better served by Tor, but even then, it has issues. With the Onion, you'll have a slower internet experience with greater potential of rubbing virtual shoulders with cybercriminals. The exit nodes can also be a worry, and when Tor is configured to stop tracking and fingerprinting, it can break the sites and make much of their content unavailable.

That leaves us with Hoody. This new app might not have an established track record just yet but it does seem to provide a better balance of privacy, anonymity, usability, and functionality.

But of course, which privacy tool you choose will greatly depend on your personal preferences and privacy and security needs. Whichever one you choose, be careful what you share and where. Check out 6 Things You Should Never Share on Social Media.