What is a VPN and how does it work? Everything you need to know

In today's digital age, where our online activities are constantly exposed to various threats and privacy concerns, it's crucial to take control of our internet security. Enter Virtual Private Networks (VPNs)—a powerful tool that empowers users to browse the web safely and securely.

VPN meaning and definition

A VPN, or Virtual Private Network provides a secure, encrypted connection over a less secure network, such as the internet. This technology allows remote users to access private networks safely. VPNs have become a popular solution for businesses with remote teams, but are they the best option for collaboration and security?

Imagine creating a private tunnel through the vast expanse of the public internet. This secure passageway shields your data from prying eyes and ensures your online activities remain confidential. A Virtual Private Network (VPN) creates this digital sanctuary, protecting your information from unauthorized access and misuse.

What does a VPN do?

VPNs claim to offer numerous advantages for home internet users and busy workspaces, such as:

Permitting remote access

A VPN allows you to create a private remote network of select devices which is ideal for remote workers. This enables your team to stay connected—safely—even when miles, or continents, apart.

Enhanced security

Public Wi-Fi networks, commonly found in cafes or train stations, pose security risks. A VPN safeguards your data by creating a secure, encrypted connection. This means your online activities, such as browsing, emailing, or online banking, are protected from interception even when using public Wi-Fi. Advanced encryption methods, like AES (Advanced Encryption Standard), render your data unreadable to unauthorized individuals.

Bypassing location blockers and geo-restrictions 

Because a VPN hides your location and lets you choose a server in a certain region, you can view content from anywhere. If you were in China, for example, and wanted to access your social media accounts, you might find that many of these sites are blocked. However, by configuring your VPN to provide an IP based in the US, your internet would reflect your connection as though you were in the United States.

Negate throttling

While this may not be true for all VPNs and all Internet Service Providers (ISPs), sometimes a VPN service can help bypass network traffic restrictions. For example, if your ISP starts throttling your data after a certain limit, a VPN can help mask some of your activity, making your data allowance last longer. That said, using a VPN in general can slow down your broadband connection as there is a whole extra step of rerouting your connection through a VPN server. However, this is typically an issue for home broadband rather than business scenarios.

What is an IP address?

An Internet Protocol (IP) address, is a set of numbers used to identify your device when you connect to the internet. An IP address serves as identification and helps pinpoint your location. In some cases, this can be beneficial, say if you’re a small business and need your website and location to be firmly logged for local customers. If your team opts for a VPN connection but you still need to keep your IP address, there are specific VPNs for this.

The main reason VPNs aim to hide IP address is because they can give away your location. If a hacker gets access to your IP address, for example, they can see your latest online activity and potentially hack into your accounts. It’s not just hackers, though. Have you ever wondered how the ads you see in your social media channels seem to know exactly what you’ve been searching for? It’s because your ISP sells information about your internet activity. A VPN prevents this from happening as your IP address is hidden.

Benefits of VPN: Why people choose VPNs

One of the most compelling reasons to use a VPN in a work environment is to safely connect a remote team. With greater security and accessibility, your team can work more efficiently.

• Secure online activity: A VPN means you can trust that your data is safe, even when file sharing
• Privacy protection: By masking your IP address, a VPN protects your online identity and prevents ISPs from tracking your browsing habits
• Client confidence: Clients may expect you to have a VPN or equally secure service in place before they hand over any documents
• Remote network: A VPN allows your internal network to extend beyond the office—it also enable teams to work together securely from different locations, enhancing productivity and flexibility
• Unblocking content: A VPN can unblock content restricted in certain regions, providing access to global information and services

Step-by-step guide to how a VPN works

1. Initiate and establish secure connection to VPN

You can get VPN access by using a VPN client or application. This connection is known as a "VPN tunnel."

2. Encrypt internet traffic

All your internet traffic is encrypted and sent through the VPN tunnel. This encryption ensures that your data remains private and secure.

3. VPN server processes traffic

The VPN server receives the encrypted traffic from your device, decrypts it, and sends it to its intended destination (e.g., websites, online services). This ensures that your online activities remain private and secure, even if you are using a public Wi-Fi network.

By using a VPN, you can effectively safeguard your online privacy and security. For starters, it encrypts your internet traffic, preventing unauthorized access and eavesdropping. Even better, it also allows you to securely access websites and services from anywhere in the world.

How to set up VPN

Setting up a VPN is relatively straightforward and can typically be done in a few steps:

1. Choose a reputable VPN service provider and subscribe to their service
2. Download and install the VPN software or app on your device
3. Launch the VPN app and enter your login credentials
4. Connect to a VPN server of your choice

Once connected, your internet traffic will be encrypted and routed through the VPN server, providing you with enhanced online privacy and security.

Are VPNs secure?

With so much emphasis on privacy and security, it’s tempting to think of a VPN as a virtual bullet-proof vest against internet hackers. Unfortunately, this isn’t quite true. At its most secure, a VPN can give you a safe way to get online without worrying about security threats. However, VPNs aren’t impervious to hacking themselves. Plus, using a VPN to stop your ISP keeping tabs on you isn’t foolproof. Numerous cases have shown that some VPNs do log your activity even after saying they keep no logs at all.

The extent of this will depend on the location of the VPN provider themselves as they’ll need to conform to different rules. Within Europe, for example, the General Data Protection Regulation (GDPR) prevents this from happening. Still, you shouldn’t assume your VPN is an infallible option to online security.

Key considerations when using a VPN

Consider the following when thinking about equipping your work PC or whole team with a VPN service:

VPN location

Will a VPN work in your chosen destination based on the provider location? For example, if you want to access a site that is blocked to your USA location, you’ll need a server that is based in the site’s preferred country. Check that your VPN has servers there. Further, a VPN will abide by the rules of the country it operates in, not that of its customer, (more on that below).

VPN type

VPNs can be as simple as extension add-ons or as extensive as a whole corporate VPN network. If your office is looking to improve its collaborative tools, you’ll need to look at corporate options.

VPN cost

The more complex the VPN, the higher the cost. For corporate VPN services, you’re looking at a custom built IT solution that is likely to be a substantial investment.

VPN operating systems

You’ll need to pick a VPN service that is compatible with your operating system. Linux computers, for example, may need a different VPN client than Microsoft Windows.

Device

If you plan to use a VPN on your mobile devices, like your phone or tablet, you may need a different VPN than the one you select for your laptop.

Should my business use a VPN?

There are many benefits to using a VPN, although the exact type you need to use can be the difference between a great tool or a needless expense. VPN protocol is hard to beat when it comes to protecting your data at a network level, but a good security framework consisting of suitable anti-malware software can offer strong protection for your devices. A corporate VPN will require time to be built and on-boarded. It also requires maintenance and a dedicated IT specialist to keep it going. For simple remote working and file sharing, Dropbox is a better option.

What are the downsides to a VPN?

There are many benefits to a VPN, though many of these perks can also be accessed through alternative means. Remote working, for example, can be successful using other software or services which don’t require as much set-up, maintenance or cost.

Consider the cons of a VPN before you go ahead:

• Can be costly, especially for a corporate set up
• Requires maintenance for businesses
• A remote network needs to be initially set up by an IT specialist—Dropbox requires only a simple sign-up
• Isn’t always as secure as it may seem
• Can significantly slow down your internet speed
• In some countries, VPNs are seen as a legal grey area or illegal

Some brands have made efforts to block users who are using VPNs. This could result in a black mark against a company account.

In the end, you should consider what you really want to achieve with a VPN. Can you collaborate just as efficiently using a tool like Dropbox? Can you surf the web as freely using an online proxy server? Can you keep security levels high with up-to-date anti-malware and firewall programs? If the answer is yes to any of these, a VPN may be an unnecessarily complex solution.

While VPNs are a popular and effective solution for enhancing online privacy and security, there are several alternatives that offer different features and benefits. Each alternative has its own unique characteristics and may be better suited for specific needs and requirements.

Dropbox can simplify remote access as a VPN alternative

If your main reason for using a VPN is to make sure your team can stay connected remotely, there are better alternatives. VPNs definitely have their advantages in various areas, but when it comes to remote working, the cost and time needed to get a corporate VPN up and running can seem daunting. Even tech savvy users can find the multi-step process of connecting to a file server via VPN irritating. Dropbox provides file security and enables remote access by just signing in, making it a simple and effective VPN alternative for these needs.

Ready to enhance your online security and improve your team's remote collaboration? Explore VPN solutions or discover how Dropbox can simplify secure remote access with ease. Take control of your internet security today and ensure your team's productivity and safety. Get started now with Dropbox and experience a seamless alternative to traditional VPNs.