What Is the Purpose of a Proxy Server? A proxy server is a special type of network node that alters packets that pass through it, masking their IP addresses and making it seem that the packets originated at the proxy system. Proxy servers may be a natural part of your network architecture, or they may be third-party servers that provide anonymity to their users. Using a proxy can help mask your activities online from prying eyes, but it can also open up your business's computer network to a host of security threats. Networking In some cases, a proxy server may be required due to your networking configuration. If you have multiple PCs in your home, the router provided by your Internet service provider serves as a sort of proxy for your system. All outgoing traffic first travels to the router, which serves as your connection to the outside world. From the perspective of the Internet, all your traffic seems to come from a single IP address, no matter how many machines you co...