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What Is A VPN? Types, Uses and How to Pick the Right One

Olivia Edens
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The internet is like a virtual pool with limitless information and entertainment. But just like public pools have lifeguards for protection, a VPN protects your privacy when you’re browsing online.

Whether you’re looking to connect your remote employees to a shared company network securely or just tired of being tracked by advertisers — a VPN is for you.

What Is VPN?

Ready to dive into the world of VPNs? Discover the best time to use a VPN, the different types and limitations below!

What This Article Covers

What Is a VPN and What Does It Do?

A VPN is a tool for ensuring online privacy by encrypting users’ data and IP addresses. VPN stands for virtual private network, which hides a lot of information like your browser history, location, endpoint device (Windows PC or an Android smartphone, for example) and browsing activity.

VPNs establish a secure encrypted tunnel for your data, safeguarding your digital identity by hiding your Internet Protocol (IP) addresses and creating private connections (which is especially ideal when you’re using public Wi-Fi connections or Hotspots).

A virtual private network is like a protective shield against various online threats. First up, it shields your online activities from your internet service provider (ISP) making it difficult for them to track and analyze your browsing habits.

In the realm of cybersecurity, VPNs provide a defense against hackers and cybercriminals, especially when you use public Wi-Fi networks.

Additionally, VPNs prevent websites and online advertisers from tracking your IP address and collecting data on your online behavior, reducing the likelihood of encountering targeted advertising.

How Does a VPN Work?

VPNs establish secure private networks, providing a safeguard for devices connected to public Wi-Fi against threats like hackers. VPNs route a device’s connections through a private server instead of an ISP so, when the data hits the internet, the device from which it came does not appear. It protects your sensitive data from unauthorized access or eavesdropping.

A VPN connects your computer, smartphone or tablet to another computer on the internet (known as a server). This connection lets you use the internet through the server’s location. For example, if the server is in a different country, it can make it seem like your online presence is from that country, giving you access to information that might be restricted otherwise.

VPN solutions create encrypted tunnels for all sent and received data, stopping unauthorized monitoring by others.
How can a VPN keep your info private? The short answer: Encryption! Encryption makes data unreadable and only decryptable with a key known to the device (like your smartphone).

Internet Protocol Security (IPsec) and Secure Sockets Layer (SSL) are two of the most widely used secure network protocols in VPN technology. IPsec connections use pre-assigned client and server keys to encrypt, send and receive traffic. SSL VPN uses public-key encryption to exchange cryptographic keys securely.

Different VPNs use slightly different encryptions, but the general process involves tunneling.

What is VPN Tunneling?

The VPN tunneling is the process of encapsulating data in a protective tunnel, safeguarding it from threats, ensuring the confidentiality and integrity of transmitted information through packet encryption. It creates a secure and encrypted communication channel over unsecured networks.

The VPN encrypts data as it travels between the device and the server. It then decrypts it and sends it to a destination, like a website, via the server.

Here are some popular tunneling operating systems:

  • Linux
  • Oracle Solaris
  • FreeBSD
  • UNIX
  • Supports Windows clients

VPN tunneling empowers users to forge secure connections to remote servers or networks. This results in the effective extension of a private network over public infrastructures, serving as a critical tool to fortify sensitive data, facilitate secure remote access and uphold user privacy in a digital landscape.

What is split tunneling?

VPN split tunneling lets a users divide their internet traffic into two separate paths (or tunnels) while using a VPN. With split tunneling, some of the user’s traffic is directed through the encrypted VPN tunnel, while other traffic is allowed to travel directly through the regular internet connection without going through the VPN.

In simple terms, split tunneling allows you to choose which applications or websites use the VPN connection and which ones access the internet without it. This reduces VPN bandwidth usage, allowing certain applications or services to bypass the VPN for various reasons like maintaining faster internet speeds for non-sensitive activities.

VPN Servers

Internet access is essential for global businesses, from shopping and entertainment to banking and medical care. Using internet services involves sending critical information, such as credit card details, medical records and other personal information like home addresses, over the internet. VPNs shield your online activity from prying eyes and prevent the exploitation of sensitive data when used in a corporate setting.

Types

There are four different types of VPNs.

1. Remote Access

Remote access VPNs allow users to connect their devices to the network outside the organization’s office. In this device-to-network approach, users typically connect their laptop, smartphone or tablet to the network via a VPN.

Advances in VPN technology have made it possible to perform security checks to ensure that a device is secure before it’s allowed to connect.

Pros

  • Flexible for employees, letting them work from virtually any location.
  • Remote access to company resources, files and applications from outside the office (particularly beneficial for tasks that require remote collaboration or quick access to information).
  • Scalable to accommodate a growing remote workforce, making them suitable for organizations experiencing expansion or those with varying numbers of remote workers.
  • Robust security checks, ensuring that only secure devices are granted access to the network.

Cons

  • Slower data transfer speeds and reduced performance due to poor or unstable internet connections, making it dependent on users’ connection quality.
  • Challenging compatibility and security concerns to ensure various devices can connect to the network. Organizations need to implement strong security policies and measures to mitigate potential risks associated with diverse devices.
  • Proper setup and usage may require user training. Additionally, providing technical support for remote users can be more challenging compared to an in-office setting.
  • Misuse risks if users connect from unsecured or public networks. Organizations need to educate employees about the importance of using secure connections and implementing measures to mitigate potential security threats.

Best for

  • Workers employed remotely.
  • Companies operating in various locations.
  • Companies that prioritize security and want to ensure that devices connecting to the corporate network undergo security checks can benefit from remote access VPNs with advanced security features.
  • Organizations with varied device ecosystems: remote access VPNs are suitable for organizations with diverse device ecosystems (laptops, smartphones, tablets) because they provide a flexible solution for connecting various devices securely.

2. Site-to-Site

Companies typically use this approach across networks to connect multiple offices or branches to one central office. Site-to-site VPN encryption is beneficial to businesses with many offices in different areas.

This VPN type allows you to share essential network resources such as email servers and data storage features across multiple locations. You can also reach all users as if the server were in a physical office. Site-to-site VPNs are of two types:

Intranet VPN

Companies with multiple remote locations can communicate with each other quickly and securely by setting up an internal VPN. A single wide-area network (WAN) connects to each LAN.

VPN Extranet

Businesses working with other companies can set up remote VPNs to connect to their local area networks. This allows all parties to collaborate in a shared network environment while limiting access to their internal network.

Pros

  • Secure way for multiple offices or branches to communicate over the internet, ensuring the confidentiality and integrity of the data exchanged between them.
  • Multi-office businesses can efficiently share essential network resources, such as email servers and data storage features, across different locations. This enhances collaboration and productivity among geographically dispersed teams.
  • Consistent and always-on connection between multiple offices, creating a seamless network environment as if all locations were part of a single physical office.
  • More cost-efficient compared to dedicated private networks, as they leverage the existing internet infrastructure for secure communication between offices.
  • Scalable, making it suitable for businesses that anticipate growth or need to add new offices to their network. It allows for the expansion of the network without significant reconfiguration.

Cons

  • Individual gateway configuration and management for each location.
  • Potential performance impacts by internet latency and bandwidth limitations.
  • Complex initial setup of site-to-site VPNs, requiring coordination between different network administrators and potentially involving changes to existing network configurations.
  • Ongoing maintenance and management of site-to-site VPNs require skilled network administrators. Ensuring security, updating configurations and troubleshooting issues can contribute to maintenance overhead.
  • Careful access control requirements to prevent unauthorized access to internal networks in the case of VPN extranets, where businesses collaborate with external partners. Security measures must be robust to protect sensitive information.

Best for

  • Global businesses with dispersed locations.
  • Multi-branch businesses.
  • Growing organizations that need a scalable solution to connect new offices or expand their network infrastructure without incurring significant costs.
  • Collaborative companies engaged in partnerships. It allows secure and controlled access to shared resources without compromising internal network security

3. Client-Based

Client-based VPNs connect users to remote networks through applications/clients that handle VPN creation and connection processes. To access the secure connection, you must run the software and authenticate with your VPN username and password. This allows you to establish an encrypted link between a device and a remote network to exchange data securely.

When implementing client-based VPNs, operating systems like Mac, Windows, Android and iOS let users manually configure the connection to encrypt data based on various criteria.

Pros

  • User-friendly and easy to set up (even with minimal technical knowledge).
  • Compatible with various operating systems (Mac, Windows, Android, iOS), providing flexibility for users on different platforms.
  • Configurable VPN connection based on specific criteria, allowing you to choose which data or applications to encrypt.

Cons

  • Dependency on client software (users must install and use dedicated client software to establish the VPN connection, which may not be ideal for all users or devices).
  • Multi-device client software management and updates, adding a layer of maintenance for IT administrators.
  • Limited VPN client applications for certain devices or niche platforms.

Best for

  • Employees working from different locations or on the go.
  • Organizations where users work on different operating systems.
  • Users who require selective encryption for specific applications or data.

4. Peer-to-Peer

A P2P VPN is a service that works with a peer-to-peer network. When looking for a file on a P2P network, the service looks for copies of the file and connects to sources that have part of or all of the requested file.

Monitor upload and download speeds alongside other data while using a VPN. Source

Since you’re getting information from several nodes that each carry little portions of the same material, P2P speeds up the file-sharing process. The data is also uploaded to other users looking for it as you download the file.

Pros

  • Faster file-sharing (distributed among multiple nodes).
  • Quicker download speeds compared to traditional centralized methods due to simultaneous download/upload of file parts from/to multiple sources.
  • Scalable (ideal for growing teams adding users frequently).

Cons

  • Potential vulnerability exposure and security risks due to users connecting directly to each other.
  • Varied quality based on the number of users and their upload speeds, possibly causing inconsistent performance.
  • Slow internet speeds due to network congestion or limited upload bandwidth.

Best for

  • People who frequently share large-scale files like media files or large datasets. For example, data analysts, game developers or designers.
  • Users who are tech-savvy and comfortable with configuring and managing their network settings, as well as understanding the potential security risks associated with direct peer-to-peer connections.
  • Individuals with reliable and high-speed internet connections will generally have a better experience (due to performance being influenced by the upload speeds).

Uses

We live in an era of digital connectivity. Whether you’re working from home or casually browsing at the local Starbucks, a VPN has your back when it comes to privacy and security. Dive into the common uses for a VPN below!

  • Working From Home: Using a VPN lets remote employees securely connect to the company’s shared network while protecting projects and files.
  • Securing a Shared Network: Maintain the safety of your shared network. Business communications will be more secure if you use a VPN across your shared network. VPNs can also reduce your company’s vulnerability to cyberattacks.
  • Managing Access Control: Access control measures are also available with VPNs, ensuring that confidential information isn’t accessible to everyone. Before gaining access, users must log in and verify their authorization.
  • Browsing on Any Device Safely: Securely connect to your company’s cloud no matter what device you’re using. Since a VPN is encrypted and hosted remotely, you can access it from any location without fear of a security compromise.
  • Bypassing Geo-Restrictions: You may come across locations that ban or censor parts of the internet while traveling for business. This can be a significant inconvenience, particularly if you can’t access work-related websites. You can access any prohibited content by connecting to a VPN from your home location.
  • Watching Movies and Shows: People use VPNs while accessing streaming services, like Netflix or Hulu, from different countries by connecting to a server in a specific location to bypass regional content restrictions.
  • Protecting Your Financial Transactions: A VPN encrypts your connection and anonymizes your outbound traffic, preventing unlawful tracking of your commercial transactions or transfers. Boost your peace of mind when it comes to shopping online and protect your sensitive information, reducing the risk of identity theft or fraud.
  • Avoiding Social Media Blocks: Some regions of the world restrict Facebook and other social media platforms. If you need to stay connected when visiting China or Iran, a VPN helps get past these restrictions.
  • Maintaining Account Access: Avoid account freezes due to suspicious activity by using a VPN that suggests you are still at your usual address.

How It Protects Your IP Address and Privacy

When you use a VPN, your actual IP address (the unique identifier assigned to your device on the internet) is hidden. Instead, the VPN server assigns you a new IP address, masking your location. By using a VPN, your online activities are associated with the IP address of the VPN server, not your own.

Since VPN servers operate as a middleman between the device and the internet, online sites and applications only see the server’s IP address, not the user’s.

Most VPNs are monthly subscription services that provide access to hundreds or thousands of servers worldwide. So to hide the IP address (and thus internet traffic), you only need a few clicks.

Hiding an IP Address

Follow these steps to hide your IP address.

  1. Create a VPN account.
  2. Download the VPN. Apps for Windows and Mac are often downloaded through the provider’s website.
  3. Install and launch the VPN app.
  4. Login with your account information.
  5. Find the server.
  6. Click the connect button, or double-click the server to start the connection.

Select your desired IP location and connect to an available server. Source

A VPN that uses a shared IP hides the actual IP address, making it indistinguishable from all other users.

Domain Name System (DNS) works as an internet directory, transforming domain names into IP addresses that devices can communicate with. You’re presumably using a DNS server managed by your ISP or Google by default.

Even if you connect to a VPN, these servers can check your IP address when you request a website. It’s critical to use a VPN with your DNS server to prevent your IP address from being shared with third parties.

If you want to hide your IP address, it’s important to have a VPN with the following features:

Enable or disable kill switch functionality. Source

  • Leak protection: VPNs are supposed to keep all internet data sent to and from your device private, but they can still leak. If your information does leak, your IP address will be published. Get a VPN with DNS.
  • Kill Switch: If the VPN connection breaks, the kill switch or network lock disconnects the entire device from the internet, preventing data from being transferred from the correct IP address without VPN security.
  • Zero-Log Policy: VPN providers must not log or keep logs of internet activity or connection details that can identify users.

Encryption Protocols

A top-notch VPN ensures a rock-solid connection to your corporate network, offering a seamless user experience with fast and reliable browsing.

IP Address Encryption

A VPN service encrypts users’ data and IP addresses by skipping network activity through a secure chain connected to a server located elsewhere.

It’s like sending a sealed package with an anonymous return address — this ensures that your IP address remains hidden, especially from cybercriminals, even when connected to public Wi-Fi. This Wi-Fi VPN feature gives users access to the internet anonymously and securely.

Two-Factor Authentication

Use two-factor authentication (2FA) to verify your user ID each time a user logs on to your application or network.

When users log on to an online service, they must authenticate their ID using various options, such as one-time password verification (OTP), entering a code from the authentication system application or fingerprint scanning. These add a layer of security and prevent hackers from accessing your account even if they manage to gain a user’s login information.

2FA is like having a biometric bouncer outside a digital club. To enter, entering requires your ID (password), and then the bouncer validates your identity through a unique feature like a fingerprint or facial recognition (second factor). So, even if someone sneaks a peek at your password, they won’t be able to pass the stringent biometric check, ensuring only authorized access.

Limitations

VPNs are popular, and considering how much everyone uses the internet daily, they’re in demand, but they have certain drawbacks. Before your organization implements a VPN take the time to get familiar with potential limitations to ensure the chosen VPN is the best solution.

  • Potential Security Shortcomings: VPNs need a detailed understanding of network security issues and require careful installation and configuration, ensuring adequate protection while connected to public networks.
  • Compatibility: The ISP and the quality of service supplied are always factors in the solution. VPN solutions and products from different providers are incompatible with some connections due to VPN technology standards.
  • Company Size: Combining teams can cause technical problems, and you need to make sure you use suitable options to succeed.
  • Restrictions: It’s important to note that while VPNs are effective at bypassing geo-restrictions, some services actively work to detect and block VPN traffic. In these cases, you may need to use a VPN service that employs advanced techniques to evade detection or choose servers that are not known to be blocked by the specific service you are trying to access.

Also, keep in mind that accessing content in violation of a service’s terms of use may have legal implications.

How To Choose a VPN

There are several key factors to keep in mind when selecting a VPN. Take a look at our list of essential considerations below:

  • Usability: A user-friendly interface is essential, especially if the VPN is for personal use. Consider whether it’s manageable for employees with varying technical skills.
  • Server Coverage: A strong VPN provider has adequate coverage of VPN servers worldwide. This provides you with more options and decreases the burden on your server.
  • Security Features: It’s critical to use a safe VPN encryption algorithm. Be sure to examine the current industry standard for AES-256 encryption.
  • Logging Policy: Opt for a VPN service with a strict no-logs policy, meaning they don’t record your online activities. This enhances your privacy and security.
  • Speed and Performance: Test the VPN’s speed by checking reviews or using trial versions. A slow VPN can hinder your online experience, especially for business operations that require high bandwidth. Your connection will be slower if you don’t have enough servers to balance your loading.
  • Multihop: A VPN feature that simultaneously routes traffic to multiple servers. This isn’t a mandatory requirement, but it may improve your endpoint security.
  • Opaque VPN Server: When blocked, VPN servers make your traffic look like regular internet traffic. This helps bypass VPN barriers and hide and locate your ISP.
  • Device Compatibility: Before buying a VPN, make sure it’s compatible with the device you want to protect including desktops, laptops, smartphones and tablets. Check for the number of simultaneous connections allowed.
  • Random Access Memory (RAM): Servers have become an essential component of VPN services. When running in RAM (random access memory), the server automatically deletes all data each time it shuts down.
  • Customer Support: Evaluate the quality and responsiveness of customer support. 24/7 support is particularly crucial for businesses with global operations. Research the VPN provider’s reputation and read reviews from both experts and users.
  • Compliance: Ensure the VPN complies with relevant data protection regulations, especially important for businesses dealing with sensitive information.
  • Cost: Most VPN providers offer different subscription plans, typically based on the duration of the subscription (monthly, yearly or longer). Consider your usage pattern and choose a plan that suits your needs. Be aware of any potential price increases upon renewal. Some VPN providers offer lower introductory rates, but the renewal cost may be higher. Consider the number of devices covered under a single subscription.

For business VPNs, consider features like dedicated IP addresses, multi-user support, and centralized management to streamline administration.

Taking the time to carefully assess these factors ensures choosing a VPN that aligns with your specific needs, whether it’s for personal use or to enhance the security and efficiency of your daily business operations.

FAQs

Why do you need a VPN?

VPNs improve overall security and remote access regardless of which country you’re currently in, even ones with strict internet access laws. VPNs can also offer secure data transfer between employees, individuals and groups outside the company.

Do VPNs protect your business against malware?

Yes, VPNs primarily focus on securing communication by encrypting data transmitted between devices and the network, but they are not specifically designed to protect against malware. To safeguard your business against malware, it’s essential to implement additional cybersecurity measures such as antivirus software, firewalls and regular software updates in conjunction with a VPN for comprehensive protection.

Do VPNs completely hide your identity?

VPNs don’t conceal your online identity. Services like Google and Facebook, which necessitate logins, are aware of your activity. Cookies left on your device by websites can identify access from a specific browser. Anyone with direct device access can see your activity, and law enforcement may monitor devices or request recording operations through local authorities.

According to NordVPN:

While a VPN boosts your online privacy and security, it doesn’t guarantee complete digital anonymity. No online cybersecurity tool can do that because of how interconnected the online space is.

A VPN connection does give you a degree of anonymity in the ways mentioned above. It secures your online traffic with encryption, hides your real IP address, and protects you from being tracked online (to an extent).”

Think of it like this:

If you enter your office using your work badge, but you’re dressed like Spider-Man, while you’re disguised from your boss, the security system itself knows who you are — similarly, a VPN prevents your ISP from seeing what you search for, but your search engine can still see if you’re logged into an account like your Google account.

Can a VPN stop throttling?

Yes! (Depending on the situation). Throttling typically occurs when your internet service provider (ISP) intentionally reduces your internet speed for specific activities or during certain times. VPNs encrypt your internet traffic, making it difficult for your ISP to inspect and selectively throttle specific types of traffic (like streaming videos).

Also, some ISPs throttle bandwidth during peak hours to manage network congestion. If you connect to a VPN server in a different location, your traffic may not be subject to the same congestion policies, potentially resulting in better speeds.

Note: The ability of your VPN to stop throttling can vary based on your location, the specific activities your ISP throttles, server capacity and other policies of your ISP.

According to ISP Throttling: How Do You Know If You’re Being Throttled:

Throttling is when your internet service provider, or ISP, slows down your internet speeds on purpose, limiting your bandwidth for certain websites. Unfortunately, ISPs can throttle anything online, from live streaming and gaming to high-definition video, downloading, and torrenting.”

Is using a VPN legal?

Yes, using a VPN is legal in most countries. Keep in mind, specific regulations may vary, and some activities conducted through a VPN, like illegal content or activities, can still be subject to legal consequences.

How much does a VPN cost?

The cost of a VPN varies depending on the provider, features and subscription duration. Most VPNs charge monthly, but in some cases you can opt for an annual plan or a 2-year plan, which generally comes at a lower monthly cost.

Additional Resources

VPNs are one tool in an arsenal of defensive cybersecurity weapons. If you want to learn more about cybersecurity tools and trends, check out some of our other articles:

Conclusion

As you venture into the online world, a VPN conceals your IP address and camouflages your location almost like an invisible cloak. A virtual private network is worth the investment, creating a safe pathway between you and the internet while guiding your data through a protected virtual tunnel, keeping it secure with encryption.

If you’re looking for a way to protect your computer against external attacks or want a boost in peace of mind while you work and travel, it’s time for a VPN.

Remember that while VPNs offer various benefits, it’s essential to choose a reputable VPN service, because not all providers offer the same level of security and privacy. Additionally, the legality of VPN usage may vary by country, so keep that on your radar and comply with local laws.

What’s your go-to VPN? Is your workplace using a VPN? Let us know in the comments!

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