Ultimate online privacy protection
A VPN is simply a private network consisting of two of more computers connected together on the Internet using an encryption protocol to secure the content of communications. This ensures that no 3rd parties are able to eavesdrop on the communication between the computers in the VPN. Unlike a proxy service, once a VPN connection is established, all incoming and outgoing traffic between the computers is encrypted. It therefore encrypts not only your web browsing, but also your email, Skype, VoIP etc. Most importantly, your ISP (or anyone else), cannot log, view, or control your Internet activity whatsoever.
From the perspective of websites and other services on the Internet, when your VPN connection is established your traffic will appear to originate from the VPN server. Therefore, if you connect to a VPN server in the UK your IP address will indicate that you are located in the UK. The best VPN services will provide you with access to many different servers in multiple countries. Your actual IP address and location will be completely hidden and impossible to determine unless you voluntarily give this information out e.g. when completing an online form etc.
In Alice's case, her traffic is flowing through the ISP without any encryption and so the logs record exactly where she is connected. The servers to which she is connected also log her real IP address affording her no privacy.
In Bob's case, he is connected to the IVPN server and therefore all traffic through the ISP is encrypted. The ISP can only record that bob is connected to the IVPN server, nothing else. The servers to which he is connected think that it is the IVPN server which has connected to them and so they can only record the IP address of the IVPN server in their logs. The best VPN services will diligently ensure that they do not log any user connection data ensuring absolute privacy for their customers.
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