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Crypto Terms:  Letter V
Jun 19, 2023 |
updated Apr 02, 2024

What is Virtual Private Network (VPN)?

Virtual Private Network (VPN) Meaning:
Virtual Private Network (VPN) - a technology used to provide privacy and anonymity by creating a safe and encrypted network on a public internet connection.
3 minutes

Let's find out Virtual Private Network (VPN) meaning, definition in crypto, what is Virtual Private Network (VPN), and all other detailed facts.

A virtual private network (VPN) is a technology that encrypts your internet traffic and sends it through an intermediary server in your preferred location.

Even if you're using an insecure Wi-Fi network, the encryption ensures that no one can see what you're doing online. A VPN can also spoof your location, giving the impression that your computer is located someplace else. This is important for getting around government censorship and accessing region-locked content like streaming video services (e.g. Netflix).

The Main Benefits That VPNs Offer

  • Anonymity. Since some websites restrict content based on the location of the visitor, a VPN allows you to view content that would otherwise be unavailable.
  • Security. Using VPN makes your online traffic seem like it originates from the VPN's server rather than from your computer. Hackers and identity thieves will have a harder time tracking your online activities as a result. If you're in the United States and the VPN server is in Spain, your traffic will appear to be coming from Spain rather than the U.S.
  • Privacy. Many customers are afraid that their internet service providers are monitoring their online activities. VPNs offer built-in privacy measures that prevent tracking because there are no logs of user activity (aside from payment information).

The most important benefit of VPNs is definitely online privacy. Why? Because it is a basic human right that is constantly in jeopardy as more and more of our lives shift online. Technology is perpetuating the problem by allowing governments and corporations to collect vast amounts of personal data that can then be used for a variety of purposes. Therefore, you can always use VPN to maintain your privacy and stay anonymous.

How Does VPN Technology Work?

VPN establishes a tunnel between you and a provider-controlled server. All web communication between your computer and the server is encrypted in a way that only the decryption key can read it. Anyone spying on your local network won't be able to observe what you're doing online as a result of this. It also stops your Internet Service Provider from knowing which websites you visit.

Tunneling is a prominent VPN feature since it allows users to avoid being restricted to certain websites or applications. If a person has VPN access, they can access everything on the network. 

Besides, VPNs can be used to grant access to those who aren't on your network. Some companies, for example, allow remote employees to securely connect to the company database through VPNs while working from home or while being on vacation.