Proxy Server from whatis.com
An advantage of a proxy server is that its cache can serve all users. If one or more Internet sites are frequently requested, these are likely to be in the proxy's cache, which will improve user response time. A proxy can also log its interactions, which can be helpful for troubleshooting.
Here’s a simple example of how proxy servers work:
When a proxy server receives a request for an Internet resource (such as a Web page), it looks in its local cache of previously pages. If it finds the page, it returns it to the user without needing to forward the request to the Internet. If the page is not in the cache, the proxy server, acting as a client on behalf of the user, uses one of its own IP addresses to request the page from the server out on the Internet. When the page is returned, the proxy server relates it to the original request and forwards it on to the user.
Proxy servers are used for both legal and illegal purposes. In the enterprise, a proxy server is used to facilitate security, administrative control or caching services, among other purposes. In a personal computing context, proxy servers are used to enable user privacy and anonymous surfing. Proxy servers can also be used for the opposite purpose: To monitor traffic and undermine user privacy.
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