VPN (Virtual Private network) is a setup where you can use the VPN server's IP to use internet and other network services. Your real IP address remains hidden.

This can have several advantages, in the form of anonymity, security, and for bypassing network restrictions. When using a VPN connection, all the network traffic gets tunneled privately between your computer and the VPN server.

This gives an extra layer of security while surfing the Internet. The websites you visit see that your IP address is the IP address of the VPN server, and not your real IP address. From a security standpoint, VPN can act like a firewall. Attacks are usually directed against particular IP addresses by malicious hackers.

By using VPN, your real IP address remains hidden so your IP is not exposed to possible attacks. Many websites and ordering systems on the Internet track and store the IP addresses of all visitors to their pages. When using VPN, they do not get your real IP address.

Thus your privacy remains protected as those websites cannot track who you really are. You can use forums, guestbooks, blog comments, etc. that would otherwise block you with your real geographic IP address. International Internet users from countries where Internet access is regulated or blocked will benefit from using VPN services.

Countries like China, Countries in the Middle East, etc. are strict about policing the Internet and they block many websites that you may need to visit when you are in these countries.

In such cases you can use the VPN services to bypass the Internet restrictions made by the host governments. The VPN's usually have USA-based server IP addresses. This makes you American, at least from the point of view of websites in the Internet. If you make Skype calls using VPN, then Skype sees that you are American user and so call rates are lower, the same offered to American citizens within America.

VPN's are also useful when you are accessing the Internet through wireless means, like from Wi-Fi hotspots like Starbucks. The facility managers who provide Wi-Fi hotspot services can use network sniffing tools to monitor their Wireless Networks.

They can get to see your passwords by using these sniffing tools. By using VPN your privacy is protected and they will not be able to see your personal details even if they are using network sniffers and packet monitors.

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