The word proxy is derived from the Latin word 'proximus' that means 'close'. It actually is related to a web based service that works between different web servers and their clients. The clients are the computers (operated by people) that request certain services to a proxy (or more appropriately a proxy server), which then forwards those requests to the appropriate web servers to which the clients cannot link directly or do not opt to link directly.
Therefore, a proxy acts like the firewall of our computers, and prevents the web servers to know about the technical details of the client side. This helps in keeping the anonymity of the clients or people surfing the internet.
Whenever someone uses a proxy to open any page or website, his or her information is blocked by the proxy server from the website or visiting page.
Anonymous web surfing has been legalized already to prevent the safety of web users. Therefore, using proxies is in no way considered against law. Instead, it is considered safe to surf the internet via proxies.
Keeping his/her anonymity on the internet is any web user's legal right, and using proxies to accomplish the same is an easy way to avoid making your personal information available to any web host/server.
Proxies work for the same motive, like the privacy settings exist on any networking site. To keep your privacy while surfing the internet, you only need a site providing random IP address (Internet Protocol) that will hide your actual IP address.
IP addresses are a way to find any network connection or administrator depending upon the internet connection used by a person. IP addresses act like a nameplate for any computer.
Therefore, their open availability can be a risk to users online privacy as anyone with a sound knowledge of tracing the IP addresses can know the computer linking to some network or web server.
Moreover, if IP addresses become traceable, any online activity done by the user from that IP address can be known easily. This can also lead to IP address hacking and many grave problems can result.
When a user visits a site, many things can happen apart from the tracking of IP address. These include cookie placement, running scripts that can crash your browser, putting pop-up ads when you open a web page and so on and so forth.
Proxies have many inbuilt options to tackle these problems too. For instance, users can opt for removing cookies or not allowing their storage, hide referrer site, and choose script enabling or disabling options to allow the JavaScript or any other kind of script to run on the site when you visit it. Cookies act to track your IP address, so it is always better to disable them while using proxies.
Briefly, proxies not only provide us a safe web surfing, they also act to keep our personal information hidden from the potential hackers.
They have their downsides too, like these days not all public proxies are reliable. Some of the proxy administrators can even spy on your traffic and activities.