ok it works like this
when you connect to the internet your computer connects with your internet provider and then you browse sites.
When you visit sites you send your ip information in the http headers you send to and from the website you are browsing.
With a proxy it is simply another server that is open and you can use. You can connect to it and then browse the internet. When you visit websites instead of the website getting your ip when you visit it gets the proxxies ip address instead. This means the website doesn't know it is you connecting to it. This is why people use proxies sometimes when they connect to forums. If their ip address has been banned, using a proxy means they will be logged under the proxies ip address and can usually re register quite easily.
You can also browse sites that have been blocked by your isp as to them you are just connecting to the proxy, they do not see where you are connecting to beyond the proxy. In general though they are abused by spammers and hackers.
Not sure if I have made myself clear as I have just babbled on without really thinking if I have explained it properly???
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