How does a VPN Work, It’s History and Why Should You Use a VPN?
Last Updated :
14 Feb, 2025
With increasing online surveillance, cybersecurity threats, and geo-restrictions on content, a Virtual Private Network (VPN) has become a necessity rather than a luxury. In many Countries Governments and ISPs (Internet Service Providers) track online activity, many streaming platforms enforce regional restrictions, and using public Wi-Fi networks expose users to cyberattacks. A VPN encrypts your internet traffic, hides your IP address, and allows unrestricted access to websites and streaming platforms—ensuring maximum online security and privacy.
In this guide, we’ll explain what a VPN is, how it works, and why you should use one—including the latest benefits, risks, and expert tips to help you choose the best VPN for your needs.
How does a VPN Work
What is a VPN?
A Virtual Private Network (VPN) is a service that encrypts your internet traffic and masks your IP address by routing your connection through a secure server. This prevents hackers, ISPs (Internet Service Providers), governments, and third-party trackers from monitoring or logging your online activities.
VPN Advantages:
- Stay anonymous online by hiding your IP address.
- Bypass geo-blocks to access content from anywhere.
- Prevent ISP throttling and improve internet speed.
- Secure your data from cybercriminals, especially on public Wi-Fi.
History of VPN: Evolution & Growth
The concept of Virtual Private Networks (VPNs) dates back to the 1990s when businesses needed secure remote access to private company networks:
| Year |
Key Milestone |
| 1996 |
Microsoft develops the PPTP (Point-to-Point Tunneling Protocol) to create secure connections for remote employees. |
| 2000s |
VPN technology expands to personal use, with individuals using VPNs for privacy and security. |
| 2010s |
VPN adoption surges due to concerns over government surveillance (e.g., Edward Snowden’s NSA revelations). Newer VPN protocols like OpenVPN and WireGuard improve speed and security. |
| 2020s |
With geo-restrictions, online censorship, and ISP tracking increasing, VPNs become a mainstream tool for privacy, streaming, and unrestricted access. The rise of AI-driven cybersecurity enhances VPN capabilities. |
| 2025 & Beyond |
VPNs integrate with Artificial Intelligence (AI) to offer automated security, split tunneling, and adaptive encryption based on network risks. |
How does a Virtual Private Network Work?
- Encrypts Data: A VPN scrambles your internet traffic using advanced encryption protocols (AES-256-bit encryption) to make it unreadable to hackers, ISPs, and advertisers.
- Hides Your IP Address: When you connect to a VPN, your real IP address is masked and replaced with one from the VPN server. This makes your location and identity untraceable.
- Routes Traffic Through Secure Servers: Your internet traffic is redirected through a secure VPN server in another country, making it look like you’re browsing from that location.
Example: If you’re in India but connect to a VPN server in the US, websites will see your location as the United States instead of India.
Working Principle of VPN with Diagram
- Establishing a Secure Connection: A VPN creates a secure “tunnel” between your device and the VPN server to protect your data from unauthorized access.
- Encryption of Data: When connected, the VPN encrypts all data transmitted between your device and the VPN server, ensuring it is unreadable to third parties.
- Exchange of Encryption Keys: Your device and the VPN server exchange unique encryption keys that lock and unlock your data during transmission.
- Masking IP Address: The VPN server replaces your real IP address with its own, hiding your location and online activity from websites and ISPs.
- Routing Traffic Through the Server: All internet traffic is routed through the VPN server, making it appear as though you’re browsing from the server’s location.
- Use of Network Protocols: VPNs rely on secure protocols like IPsec or OpenVPN to ensure:
- Data Confidentiality: Encrypts the data to keep it private.
- Data Integrity: Prevents tampering or altering of data during transmission.
- Authentication: Confirms that the connection is between trusted devices and servers.
- Protection on Public Wi-Fi: VPNs secure your data even on unsecured networks, such as public Wi-Fi, preventing hackers from intercepting sensitive information.
Working Principle of VPN
This ensures your online activities are private, secure, and anonymous.
Why Should You Use a VPN in 2025?
With data privacy laws tightening and government surveillance increasing, using a VPN is no longer optional—it’s essential. Here are the key reasons why a VPN is crucial in 2025:
1. Prevent ISP Tracking & Government Surveillance
ISPs (like AT&T, Comcast, and Vodafone) track everything you do online—what websites you visit, what you download, and even your location. Governments also collect user data under laws like the USA’s Patriot Act and the UK’s Investigatory Powers Act.
With a VPN: Your data is encrypted, and your ISP cannot monitor or log your browsing activity.
2. Unblock Geo-Restricted Streaming & Websites
Streaming platforms like Netflix, Disney+, Hulu, and BBC iPlayer have region-based content restrictions. Many websites, such as news platforms, banking services, and gaming servers, also restrict access based on location.
With a VPN: You can change your virtual location by connecting to a server in another country and bypass geo-blocks effortlessly.
Example
- Want to watch US Netflix while traveling in Europe? Just connect to a US VPN server.
- Access blocked social media and messaging apps (like WhatsApp, Telegram, or Twitter) in countries with strict censorship, like China or UAE.
3. Secure Your Data on Public Wi-Fi (Hotels, Airports, Cafes)
Public Wi-Fi networks are highly vulnerable to cyberattacks. Hackers use Wi-Fi sniffing tools to steal passwords, credit card details, and personal information.
With a VPN: Your data is encrypted, preventing hackers from intercepting sensitive information.
Example: If you’re logging into your online banking account on airport Wi-Fi, a VPN protects your financial details.
4. Prevent Bandwidth Throttling & Improve Internet Speeds
Many ISPs throttle (slow down) your internet speed when they detect high data usage, such as:
- Streaming in HD/4K
- Gaming online
- Downloading large files (P2P/Torrents)
With a VPN: Your ISP cannot detect your activity, ensuring faster, unrestricted speeds.
Example: If your ISP limits your speed while watching YouTube or Netflix, a VPN prevents throttling and ensures smooth streaming.
5. Secure Remote Work & Business Data
With remote work becoming the norm, businesses need secure VPN connections to protect confidential company data.
With a VPN: Employees can securely access company servers, internal files, and cloud-based tools without exposing sensitive information.
Example: Many corporations use corporate VPNs like NordLayer, Perimeter 81, and Cisco AnyConnect for secure remote work.
6. Save Money on Flights, Hotels & Online Shopping
Many online retailers show different prices based on location. Airlines, hotel booking sites, and e-commerce platforms adjust prices based on your IP address.
With a VPN: You can change your location and find cheaper deals on flights, hotels, and products.
Example: Search for a flight from a different country’s VPN server and get cheaper airfare.
What Types of VPNs Are Available?
| VPN Type |
Best For |
Pros |
Cons |
| Personal VPN |
Privacy, security, streaming |
Easy to use, protects online activity |
Slower speeds with free VPNs |
| Corporate VPN |
Business security & remote work |
Encrypts sensitive data, secure access |
Requires IT setup |
| Free VPN |
Occasional use |
No cost, easy setup |
Data limits, logs user activity |
| Paid VPN |
High security & fast speeds |
No logs, fast speeds, unlimited data |
Requires subscription |
Final Verdict: Do You Need a VPN in 2025?
Yes! A VPN is no longer optional—it’s an essential tool for protecting your online privacy, security, and freedom.
- Want to prevent government surveillance? → Use a VPN.
- Want to unblock Netflix & restricted content? → Use a VPN.
- Want to protect your data from hackers? → Use a VPN.
With the increasing risks of cybercrime, censorship, and online tracking, investing in a reliable paid VPN is the smartest decision you can make in 2025.
Similar Reads
What is VPN? How It Works, Types of VPN
A VPN (Virtual Private Network) is a powerful tool that enhances online privacy, protects sensitive data, and enables secure access to the internet. In today's interconnected world, online privacy and data security are more important than ever. One of the best ways to protect yourself and enhance yo
8 min read
What is an IP Conflict and How Do You Resolve It?
An IP conflict can be defined as a condition under which two devices will be addressed to the same IP address on the same network. This can create problems, even with connectivity because the network becomes useless for determining which device to send data to. The process of changing IP involves th
10 min read
How VPN is used in the corporate world?
VPN generally Stands for Virtual Private network. Its job is to ensure the safe delivery of data across public networks. By doing this, it allows users to send data as if they were connected directly to the private network. Private WAN technology is available however they come at a price. Internet V
4 min read
Why you should replace ISP's Wifi Router?
The performance and dependability of your home network can be considerably increased by swapping out the WiFi router that came with your ISP with a third-party one. Replacing your ISP router might have several advantages, including improved WiFi performance and new functions not available with the e
6 min read
How to install and setup the OpenVPN server on Ubuntu/Debian?
A VPN is a tool that acts as a middleman between you and the Internet that you browse. Whatever you do online, the VPN acts as a connecting bridge between your computer and the Internet. To the services that you are using, for example - visiting a website), to them, it appears as if your VPN is the
6 min read
What is OpenDNS and Why it Matters for Your Network
OpenDNS is a powerful tool that enhances your internet experience by providing a more secure, faster, and smarter way to navigate the web. But what exactly is OpenDNS, and why does it matter for your network? By understanding how OpenDNS works and the benefits it brings, you can make informed decisi
7 min read
How to Set Up a VPN in Windows 11: A Beginner’s Guide [2025]
A Virtual Private Network (VPN) is a powerful tool that secures your internet connection by encrypting data and masking your IP address. It helps protect your privacy, secure sensitive information, and access geo-restricted content with ease. Whether you want to browse anonymously or ensure your onl
9 min read
Introduction of Home Area Network (HAN)
Home Area Network (HAN) is a network in a user's home where all the laptops, computers, smartphones, and other smart appliances and digital devices are connected into a network. This facilitates communication among the digital devices within a home which are connected to the Home network. Home Area
3 min read
How to Hide Your IP Address?
Hiding an IP address means borrowing a different IP address to mask the original one and make the identity private. We can borrow different IP addresses and stay hidden. There are several reasons behind hiding IP Addresses. A few of them are given below: To bypass any filters, bans, checklistsHide t
5 min read
How to Add VPN in Windows in 2025 [2 Methods]
Using a VPN (Virtual Private Network) on your Windows device is one of the best ways to ensure secure browsing and protect your online privacy. With features like encryption and IP masking, a VPN safeguards your personal data while allowing you to access restricted content. Whether you’re using the
4 min read